Creative Destruction

Creative destruction refers to the incessant product and process innovation mechanism by which new production units replace outdated ones. 

This term was coined by Joseph Schumpeter back in 1942.  He considered it 'the essential fact about capitalism'.  Sure, it might make someone squirm but that's what capitalism is all about.  

When I was a child a burger at McDonald’s was fifteen cents.  And a trip to McDonald’s wasn’t a convenience as much as it was a novelty and a special treat.  Nowadays, there is a movement pushing for a $15 and hour minimum wage – for simply standing behind the counter and politely saying ‘Welcome to McDonald’s - may I take your order?’    

We’ve come a long way from 15 cent burgers to $15 an hour unskilled starter jobs so pardon me for sounding somewhat curmudgeonly.  Faced with rising costs agitated by the labor movement – those corporate giants in the fast, consistent and convenient food business are going to respond with technological innovations.  Technology that mimics a tablet such as self-service kiosks for ordering your meal.   

I encountered one of these for the first time in the food court of The Louvre in Paris, France.  Yup.  A McDonald’s in The Louvre.  And it only took me a short while and a couple of tries to figure it out.  Pick your language, place your order via touch screen, insert your chip-enabled card, take your slip and walk over to the queue and someone will hand you your meal or soft-drinks.  Simple and fast.   

It’s not just McDonald’s that has embraced job-replacing technology - plenty of other restaurant operations have turned to this type of technology as a fix for rising labor costs.  A fix that won’t necessarily inconvenience the customer.  

Those $15 jobs aren’t being threatened by immigrants – it is the relentless march of technology.  You can learn more about this technology and additional ideas here.