NEW YORK (TheStreet) -- In an interview with The Seattle Times, Nick Hanauer, a venture capitalist who invested early in Amazon (AMZN - Get Report), stated that the dominant online retailer had "probably killed one million jobs in our economy." While it is difficult to quantify the future, should the minimum wage be increased, Amazon and companies in robotics, such as Google (GOOG) and in drones, such as Boeing (BA) will also gain. Firms in these industries are already benefitting as companies strive to be more competitive in the present wage structure.
There was an article in The Atlantic Monthly by Adam Davidson, "Making It in America," that actually did offer a very simple formula for replacing human workers with machines such as robots or drones.
The piece was about Standard Motor Products (SMP), a manufacturer with factories in Greenville, S.C. There are only "good guys" in the story: management obviously cares about its employees, who work hard. But to survive, Standard Motor Products will buy machinery when it is less than two years what a worker costs. The math here is simple as a result if the minimum wage is increased: if pay and other costs rise, more machinery such as robots and drones will replace employees.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts