Could be both
So that theory that people will get new opportunities which are as good, or they can transition into is not valid.
Now if the service sector jobs go too?
The incompassioante charge made by the gp is still fair, I think: Saying these workers provide "no value" is too business-focused and incompassioante. Yes, these workers provide little value in terms of profit to the business, but looking at societal value at a larger scales, these jobs do have value (to the workers, to their families, to the local businesses and landlords they can now make business with using their wages, to homelessness, crime, hunger, etc.). Simply replacing these workers with technology is a net negative for society if we don't do what you suggested.
The free market thinking that the poor deserve to be fired because their skills are no longer competitive, can be, I think, a privileged and incompassioante position.
We could be talking about automation or outsourcing, and it would be the same - labor (especially unskilled) is generally getting cheaper. For outsourcing, there is different labor than us that is benefiting, and that's good. That allows them to prosper and buy food and have a life. We also have robots, which are basically virtual slaves that only benefit their owners.
Overall, you could say that there would be an overabundance of labor then. And we hit this before, with the industrial revolution, and new waves of technology in general. What about all the human telephone operators? Or the candle makers? Maybe it really is different this time. Maybe it's not. Nobody really knows for sure.
It sounds uncompassionate, but these are the same forces that drive down prices so everyone can shop happy at walmart (which I do too). Providing cheaper living is great for everyone as well, and nobody remembers that when talking about fewer people working.
By creating the minimum wage floor the government enforces the notion of value creation. With hypothetical example of minimum wage set at $10 an hour everyone producing $10.01 worth of value within a 60-minute period gets to stay, everyone producing $9.99 and below gets to leave.
Compare that to Asian societies where some companies have an [usually older] tea and coffee lady in the break room. The pay is usually next to non-existent - the lady is usually retired and has a variety of savings and a safety net. She doesn't do it for a paycheck, but she craves human contact, so helping out with tea and coffee while chatting to younger employees is fulfilling her social (but never financial) needs at that age.
Such a position is impossible in US corporate environment within the current framework of labor laws, so we deny older people gigs with simple communication opportunities. Not necessarily because US companies are generally more evil and stingy.
When I used to live in Singapore I saw a lot of miserable looking hunchbacked old ladies and men cleaning food courts and they were for sure doing it for financial reasons:
https://www.bloomberg.com/news/articles/2015-01-06/what-reti...
The worst part is the excuse - the country is staggeringly wealthy, vastly unequal and yet excuses itself with "we can't afford these pensions any more" because "we have fewer children and higher life expectancy", presuming that GDP growth has obviously been zero for the last 40 years and we just haven't noticed that the money actually is there.
50% of minimum wage workers are under the age of 24
25% of minimum wage workers are under the age of 19
Entry level jobs paying minimum wage teach important skills to teens and young adults: * being on time
* attention to detail
* how to work with others
* how to follow instructions ...
There is certainly room for discussion about how to help heads-of-household who are struggling with a minimum wage job because they don't have any other skills, but it is a mistake to assume that is the situation for all minimum wage workers.High minimum wages price many entry level workers right out of the market making it difficult for them to gain these entry level skills which are important for subsequent jobs.
[1] http://www.pewresearch.org/fact-tank/2014/09/08/who-makes-mi...
1. Workers whose contributions are undervalued.
2. Workers who cannot be trained or educated to provide high-value labour.
These are both issues.
(There are other categories: parents, caregivers, the disabled, sick, or handicapped, etc. But the two classifications above represent a major part of systemic failure of labour markets.)
If you think the class gaps and problems of lack of cross-socioeconomic empathy are an issue now, wait until a middle class worker can go 24 hours without ever having to interact with anyone making less than them.
"Raise taxes to fund foodstamps? Crazy! I hear the poor are doing just fine eating their insect protein cubes. I saw a report about it on the TV last night!"
Hell is other people.
As a rule, the only skill entry level jobs teach anymore that apply to future jobs is how to eat shit and keep going. Every single habit you would learn would need to be unlearned to be valuable in skilled labor. You need to be independent and able to think of novel solutions to provide value at higher skilled jobs. Entry level jobs will grind you up and fire you under some made up offense so you can't even get unemployment. You succeed by being as close to a robot as possible.
Eh, I've had this experience at well-salaried jobs too. It's a job thing, not a minimum wage thing.
So you want an order of magnitude more competition for your own job?
Maybe we should be doing what we did in the 1930s when there was a similar 'surplus of labor' - creating jobs which create valuable public works like LaGuardia or the Lincoln Tunnel instead of pretending that if aggregate demand is weak, it's because everybody already has everything that they need.
I visit the great places created by CCC, WPA type efforts and value them, even in their often current state of disrepair.
More please. Worth it.
That said, they can pay someone $1+ mil a year to let the people under him do all the work. Give executives raises. Pay for meetings in expensive hotels that could happen over the phone. Buy lavish furnishings for their buildings. So on and so forth. Don't buy into the idea that most of these companies are ultra-rational actors investing only what they need for the benefit of the company. Lots of politics, gaming the numbers, and people on top trying to move more money their way in most of them.
B) them would never compete with those that were on an "educated" job at an earlier age and can bring years experience to a company
C) will drive fields to regulation and red taping because noone likes a massive influx of lower waged competition