Chou Toshio
Over9000
I think that "happy just to have a job" is not entirely accurate of the labor struggles of recent years.The Federal Minimum Wage should be seen mainly as a tool for the labor force. It prevents companies from playing games with their employees, threatening to lower their wages to unfair lows in return for higher productivity. As such, the main reason for its existence is for negotiation.
The reason why I believe the threat of automation makes the min. wage necessary is that I honestly believe that human labor is ultimately the preferred alternative to most corporations. Humans are easy to program, they maintain themselves, and they can adapt to changing conditions readily. They are also a pleasure to work with, and in cases like Starbucks, are vital for maintaining their customer base. Capital, on the other hand, require extensive maintenance at the cost of the company, and requires expensive labor to readjust. The threat of automation is not mainly a reduction of demand for labor, rather the threat, in itself, is a problem to be concerned with. It engenders fear among the labor force, leading it to accept lower wages in exchange for higher productivity. The minimum wage provides security against this threat. It is no coincidence that since 2005, the real value of the minimum wage has reached the price-floor for the first time since its inception. This effect can be explained as a decoupling of prices with wages. Workers are no longer concerned with what their work gets them, rather they are simply happy to have a job. Thus, markets have shifted, raising prices to cater to populations that control capital, and therefore the wealth of the nation.
While it's true that much of the able labor force has given up looking for work due to the poor market, looking at "occupy everything" as well as recent movements specifically aimed at min wage and other labor issues, I think there has been adequately aggressive moves by affected labor segments. However, the end result is as you've stated-- undoubtedly weak negotiation power for the majority of labor segments, not just hourly pay workers.
That said, I think it's also foolish to see automation as only a threat-- only a part of negotiation.
Companies are strongly incentivizes to adopt technology and cut labor costs. And in an era where a mobile upstart like Uber can stomp out an age-old industry over night, companies are more than ever aware of the need to adapt and transform-- or perish. So investment in R&D and capital investment will be increasing, not decreasing.
I think you are not giving enough thought to the very real increased incentives to automate that would result from a minimum wage increase.
Even if Starbucks' model requires human baristas to deliver their brand of customer experience, there are or will be competitors who compete or differentiate through automation. The result will be an overall decrease in human labor in the market. If humans cost more, than robots will hold a bigger market share.
None of this is saying that a minimum wage increase is a bad idea-- because the positive benefits could have a social good outweighing the impacts of these phenomena. It's all about degrees, and where real market forces fall. However, denying that these phenomena will exist to some degree is being naive.