Home
/
RELIGION & LIBERTY ONLINE
/
The minimum wage is speeding the robot apocalypse?
The minimum wage is speeding the robot apocalypse?
Feb 11, 2026 5:32 AM

Intellectuals like Stephen Hawking and Elon Musk increasingly worry about an apocalyptic world awaiting in the not-too-distant future, when automation replaces all human work(and, in time, artificial intelligence displaces humanity). A new UK study finds the robots may have found an ally: a higher minimum wage.

A looming increase in the minimum wage will likely result in a robots replacing a growing number of workers, according to the Institute for Fiscal Studies (IFS).

The UK’s minimum wage – the National Living Wage (NLW) – will rise from £7.50 today to £8.50 ($11.50 U.S.) by 2020.

The IFS has surveyed the jobs likely to be paid minimum wage and measured the “routine task intensity” (RTI) of each one. As you may expect, RTI is higher for menial labor and lower for occupations that require judgment and decision-making.

The increase is unlikely to harm waiters, bartenders, or those involved in care professions, the report states.

“But those set to be brought within the minimum wage net in 2020 are more than twice as likely to be in the ten per cent most ‘routine’ occupations – such as retail cashiers and receptionists – as those who were directly affected by the minimum in 2015,” the IFS warns. “This kind of work tends to be easier to ‘automate.’”

It is not difficult to understand. Owners hire employees to perform tasks necessary to earn a profit. The higher their wage floor, the more tempting it is to invest in automatons who do not take breaks, go on strike, or get surly with the customers.

Thus, the unemployment rate rises as the minimum wage ticks up. The Labour Party’s proposal to raise the minimum wage to £10 (about $13.50 U.S.) “would bring even more employees in more automatable jobs into the minimum wage net,” the report states.

This is true across the transatlantic space. Theory will soon give way to reality in the United States, where California has just raised the state minimum wage to $11 an hour for businesses with more than 25 employees. When that rate reaches $15 an hour in 2023, it will cost 400,000 jobs, according to a study from the Employment Policy Institute (EPI).

EPI found that every 10 percent rise in the minimum wage reduces employment by two percent – or five percent for low-wage workers.

If the harm disproportionately hits those at the lower end of the wage scale, it also hurts those already living in pockets of economic stagnation. Canada’s Fraser Institutefound thatOntario’s $15 minimum wage would have “severe effects” on those who live in “economically weaker regions” – that is, those munities are already suffering the most, presumably the ones the increase was intended to help.

Further, workers often face a panoply of impoverishing progressive policies. The “fight for 15” is usually conjoined with demands for steeper taxes on “the rich” to fund more generous public benefits. But the welfare state’s cost is seldom confined to the affluent, Dr. Madsen Pirie of the UK’s Adam Smith Institute explained in November:

The problem for the low-paid is not so much that employers pay too little, but that the government takes too much. At a mere £8,164 [or $11,050 U.S.] per annum, the government starts charging National Insurance at 12 percent. At only £11,500 [$15,563 U.S.] per year it starts charging e tax at 20 percent. Add the amount the government takes in VAT, insurance taxes, stamp duty, airport departure tax, fuel duty, alcohol duty and tobacco tax, and it adds up to a huge slice of a low-paid persons’ earnings.

Nonetheless, well-meaning Christian and Jewish clergy continue to protest for a $15 minimum wage in the United States as a matter of “justice.”Surely, the “robot apocalypse” is not the Parousia they hoped to bring to pass.

Automation is far from an unbridled negative. In time, it will create new breakthroughs, professions, and vocations in which human beings may exercise their gifts. But in the meantime, poorer workers in less attractive areas lose out.

This is another example of interventionist economic policies inspired by the best of intentions hurting the most vulnerable people.

domain.)

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Women of Liberty: Hildegard of Bingen
(March is Women’s History Month. Acton will be highlighting a number of women who have contributed significantly to the issue of liberty during this month.) “This strange child” is how Hildegard was once described. Born in 1098, she was known to have visions, but kept them private for many years. Her family sent her at the age of 8 for religious education. It was not until the age of 42 that she realized the full extent of her visions and...
International Women’s Day: Please Stop “Helping” Us So Much
International Women’s Day has been celebrated on March 8 since 1911, when Clara Zetkin, a member of the Social Democratic Party in Germany, proposed the yearly event that has its roots in women’s suffrage. It is good to remember that women have not always enjoyed the right to vote, the right to work in a safe environment and to earn a fair wage. Indeed, many women around the world still do not enjoy such basic rights. However, the website promoting...
Education by and for civil society
If we assume that the institutions of civil society, like churches, recreation centers, fantasy football leagues, and book clubs are essential for a flourishing society, it es very important to determine how such institutions are developed, maintained, and promoted. For thinkers as varied as Alexis de Tocqueville, Abraham Kuyper, and Pope Paul VI, the realm of civil society provides an indispensable area of connection and protection between the individual person and the political order. In Quadragesimo anno, Paul VI writes...
Is the Church Responsible for the Reduction in Crime?
America has a lot big problems—and we American’s like them to have one big cause. We also prefer that they have one big solution (preferably fixable by our big government). Take, for example, violent crime. Since 1992, the population increased from 255 million to 310 million but the violent crime rate fell from 757.7 per to 386.3 per 100,000 people. While in 1994 more than half of Americans considered crime to be the nation’s most important problem, only 2 percent...
Audio Roundup: Acton Vatican Experts on the Conclave
Acton president and co-founder, Rev. Robert Sirico, and Director of Research, Samuel Gregg, are currently in Rome for the ing papal conclave. Here’s a roundup of their observations, including thoughts on the legacy of Pope emeritus Benedict XVI. Rev. Sirico was recently on the Laura Ingraham show discussing Benedict XVI’s resignation and legacy with guest host, Raymond Arroyo. Rev. Sirico pointed out that in some ways this is an “era of firsts,” once a new pope is elected, there will...
Ralph Baer and the Art of Innovation
In the video below, Ralph Baer, the “father of video games,” explains why he still invents at 90 years old. “What do you expect me to do?” he asks. He likens invention to the work of a painter. Would someone ask why a painter doesn’t retire? It’s what they love to do! Indeed, it is a calling. In The Entrepreneurial Vocation, Fr. Robert Sirico writes, Entrepreneurs, as agents of change, encourage the economy to adjust to population increases, resource shifts,...
Audio: Discussing ‘Becoming Europe’ on African-American Conservatives
Samuel Gregg recently spoke with Marie Stroughter from African-American Conservatives. They discuss Gregg’s new book, ing Europe: Economic Decline, Culture, and How America Can Avoid a European Future. Stroughter asked Gregg about the dichotomy between “cuddle capitalism” (the European social model) and a dynamic market economy. Gregg says that Americans are more and more choosing a ‘Europeanized’ economy favoring security over economic liberty. Listen to the full audio here: [Audio: You can purchase the hardcover or eBook version of ing...
Integrating Faith, Work, and Economics by the Power of the Holy Spirit
Over at the IFWE blog, Art Lindsley continues his series on the gifts of the Spirit, offering seven reasons the gifts of the Holy Spirit matter for our work. “Whether working in creation or regeneration, the Spirit constantly empowers us to carry out the callings God places on our lives,” Lindsley writes. Providing some brief Biblical basis for each, he offers the following reasons: The Spirit gives us power.We shouldn’t separate “natural” and “spiritual” gifts.The Spirit helps us reach our...
Jayabalan: Possibility of a Non European Pope
Update: Video Interview with Kishore from Rome. Cardinal Malcolm Ranjith As the world awaits the beginning of the conclave, many are looking at non European Cardinals as potentials for the next pope. Channel News Asia points out that “68 per cent of the world’s Catholics currently from Latin America, Africa and Asia, there are increased calls for the next pope to be a non-European.” They asked Kishore Jayabalan, director of Acton’s Rome Office, to offer his thoughts on non Europeans...
Welfare Spending Equals $47,000 and a Ford Fiesta Per Family
When es to proving support for those in poverty, a significant number of economists, politicians, and pundits support direct transfer of money—just giving the poor cash. There are many moral and practical reasons I think that option is a suboptimal means of aiding the poorest of our neighbors. But it does have one substantial benefit: It’d be much cheaper and efficient than current welfare programs. As Daniel Halper at The Weekly Standard points out, the Senate Budget Committee finds that...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved