McDonald’s shares hit an all-time high on Tuesday as Wall Street expects sales to increase from new digital ordering kiosks that will replace cashiers in 2,500 restaurants. …
McDonald’s shares rallied 26 percent this year through Monday compared to the S&P 500’s 10 percent return.
Andrew Charles from Cowen cited plans for the restaurant chain to roll out mobile ordering across 14,000 U.S. locations by the end of 2017.
This is a direct response to two leftist government policies:
- Increasing the minimum wages in the US, in many areas from around $9 per hour to around $15 per hour in the past few years.
- Low interest rates — mandated to stimulate money manufacture to stave off depression as a response to the bubble of money manufacture from 1982 to 2008 that resulted in huge debt — mean the cost of capital is historically very low, which encourages investment in capital goods — such as digital kiosks. Government control of short term interest rates, now lowered far below their natural rate of 6% per year, artificially biases the economy to favor capital goods over labor — such as digital kiosks over workers.
Now there will be fewer minimum-wage jobs. Funny how, when you increase the price of something, less is demanded.