Home
/
RELIGION & LIBERTY ONLINE
/
The minimum wage is speeding the robot apocalypse?
The minimum wage is speeding the robot apocalypse?
Aug 14, 2026 7:57 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
The Green Energy Rhetoric Continues
Last week President Obama gave an address outlining his new energy policy. In light of the tragic events in Japan, the speech was much anticipated especially considering the president’s mitment to nuclear energy. As expected President Obama continued advocating for a greener energy policy while continuing to push for the country’s independence from oil. However, the President’s speech, an article by Reuters points out, was “short on details on how to curb U.S. energy demand.” Furthermore, the President’s call for...
‘Intergenerational Justice’ Later Today with Paul Edwards
I’m scheduled to discuss “A Call for Intergenerational Justice” with Paul Edwards later this afternoon (4:30 pm Eastern). You can listen to the live stream here and we’ll link to the archived audio as well. You can check out my piece in last Saturday’s Grand Rapids Press, “Christ’s kingdom is bigger than the federal government,” and an Acton Commentary from last month, “Back to Budget Basics,” for background. Be sure to visit Acton’s newly-released “Principles for Budget Reform,” too. This...
Experts Point Fingers at Ethanol for Rising Corn Prices
Gas prices are not the only thing on the rise. As of yesterday, corn is at its highest level in three years at $7.60 a bushel and prices are not predicated to go down anytime soon. The United States government anticipates a shortage despite farmers’ intent to plant 5 percent more acreage of corn this year, a shortage is still predicted. Reuters also indicates that rising corn prices will continue: U.S. corn prices will keep rising to new highs over...
Christ’s Kingdom and the Federal Government
In today’s Grand Rapids Press I respond to a previous piece by religion columnist Charley Honey, “Religious voices have a place in the state’s budget cut discussions.” I argue in “Christ’s kingdom is bigger than the federal government” that there is a basic confusion from many religious voices in the budget debate about the primary role of the federal government, and make the point that Abraham Kuyper’s “famous quotation attributes the claims of lordship over ‘every square inch’ of the...
Audio: Rev. Robert A. Sirico on “What Would Jesus Cut?”
This afternoon, Acton President Rev. Robert A. Sirico joined host Paul Edwards on The Paul Edwards Program (broadcasting live from the Acton Institute here in Grand Rapids today, by the way) to discuss some of the hot issues in the world of politics and economics, including the efforts of governors in Wisconsin and Michigan to address the fiscal issues faced by their states, and also giving a response to Jim Wallis’ question of what would Jesus cut? Listen via the...
Principles for Budget Reform
With the ongoing budget battle and the possibility of a government shutdown looming, the Acton Institute has released its “Principles for Budget Reform.” The Acton Institute developed four key principles to reforming the federal budget that will be important to not only providing a sound fiscal budget but a budget that also has a strong moral basis. In addition to the four principles, readers can also find staff mentaries that are related to each principle, additional articles written by Acton...
Entrepreneurs Called in Verona
This past April 1, Istituto Acton held a private viewing and debate on The Call of the Entrepreneur in the romantic city of Verona, better known for its romantic association with Romeo and Juliet than with one of Italy’s most mercial regions. Arranged and sponsored by the investors group – Noi Soci – of Cattolica Assicurazione, a private pany founded 115 years at the turn of the 19th century , the documentary was shown to a private audience of 220...
Entitlements Are Free!
While visiting my grandmother’s home for her 95th birthday a little evening television surfing brought us to House Hunters International. We observed with fascination as a couple living in New Orleans worked toward their move to the French countryside. The husband was a professional trumpeter apparently making money on the side as a carpenter. The wife was identified as a dancer of some sort. While we heard the husband pop out a few bars of When the Saints Come Marchin’...
Dr. Don Condit: A Sugar Coating for the Bitter Pill of ObamaCare
It has been over a year since the passing of the Affordable Care Act, and we are still discovering problems with it. Supporters claimed passing the bill will help everyone, especially the vulnerable. However, the Affordable Care Act ironically does just the opposite by placing the elderly in a very dangerous position. Dr. Don Condit, author of the Acton monograph a Prescription for Health Care Reform, explains how the Affordable Care Act negatively impacts the elderly and its violation of...
Rev. Sirico on Church Labor Relations
Rev. Sirico was recently quoted in an article by Our Sunday Visitor titled, “Unions, yes. But when the Church is the employer?” The article utilizes various historical examples to describe the relationship between United States Catholic Church leaders and institutions with their employees. The article seeks to demonstrate a strained relationship between Church leaders and their employees by citing historical examples, such as the 1949 gravediggers strike in New York. When Catholic social teaching is discussed in the article, Rev....
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved