NEW YORK (TheStreet) -- In an interview with The Seattle Times, Nick Hanauer, a venture capitalist who invested early in Amazon (AMZN), 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.
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