Technology-Driven Deflation or Stagflation
We can state for a fact that stagflation is not an issue; as we don’t have high unemployment with low economic growth or economic stagnation with rising prices.
Wikipedia defines Stagflation is defined as:
In economics, stagflation, or recession-inflation, is a situation in which the inflation rate is high, the economic growth rate slows, and unemployment remains steadily high. It presents a dilemma for economic policy, since actions intended to lower inflation may exacerbate unemployment
Venture funding for AI is surging as evidenced by the chart below and the trend is showing no signs of letting up; in fact, the trend is so powerful that one can almost start with certainty that technology-driven deflation is going to be a very powerful force to reckon with. Imagine, small companies having the power to do what Amazon does but on a different scale. For example, flippy the burger bot replaces several workers saving a business up to 100K a year
“We are excited about the impact Miso’s AI-based solutions will have for the restaurant industry. Humans will always play a very critical role in the hospitality side of the business… We just don’t know what the new roles will be yet in the industry.”
The Bot will never get tired, never need uniforms and it’s not going to get sick or complain. Bottom line it is the perfect worker for small business burger joints that are looking to contain their costs and improve their services. As far as the big players are concerned, it has the potential to reduce their overhead by billions. Last but not least, companies won’t have to worry about paying a minimum wage of up to $15 an hour and providing benefits
Little Caeser’s want to create their own Bot
Pizza chain Little Caesars has been awarded a patent for an AI-based robotic system that will help assemble Pizzas at a significantly faster pace. The patent includes two robots, one stationary arm and another fully-fledged robot chef to handle the dough and take care of oven duties.
According to the company’s explanation in the patent, the robot would free Little Caesars from the tedium of repetitive tasks and allow them to “perform other value-added tasks.” Presumably, that’s the same thinking that gave us Flippy, the burger-flipping robot.
It doesn’t appear to actually cook the pizzas or slice them, and the only listed topping is pepperoni — though it probably wouldn’t be hard to adapt it to other toppings. I’m sure there are only so many ways one can “properly distribute” pineapple or olives. Still, there are other robots already doing the things this particular one can’t — Zume Pizza in Silicon Valley, for example, can shape the dough and bake the pizzas at a rate of 372 an hour.
If Little Caesars were to ever combine their robot with Pizza Hut’s self-driving pizza delivery truck, the only human force we’ll ever need will be a single human to load the pizzas into the car. Full Story
Could the pizza bot move like Flippy? Time will tell
If stagflation were an issue, you would not have manufacturers creating pizza and burger bots. These bots are being created in many cases because it is getting harder and harder to find workers.
“Now he moves like a ninja and is more reliable,” says David Zito, the CEO of Miso Robotics, which created Flippy.
“We’ve been trained since childhood that robotics were coming in the future,” notes Louise Perrin, an accountant who works nearby. “To be a part of it, to see it and watch it happen live in front of you … is absolutely incredible.”
“I had to come in and see Flippy,” she says. “I’d heard the buzz. The concept of a robot flipping your burger is awesome.”
Central Bankers action Will Fuel Technology-Driven Deflation & Not Stagflation
The shrinkage of the U.S. Federal Reserve’s balance sheet has played a significant role in exerting upward pressure on borrowing costs as parts of the U.S. economy have shown signs of decelerating, a study from the Kansas City Federal Reserve released on Wednesday showed.
The model developed for the study showed the level of reserves plays “an important role in determining the federal funds-IOR spread over the medium- and longer-term and that repo rate dynamics play a relatively less important role,” A. Lee Smith, a Kansas City Fed senior economist and the author of the study, wrote. Full Story
The China Factor
It is premature to say China is coursing toward a Japan-like falling-prices drama. Yet recent data warrant a moderately sized blip on investor radar screens. In November, consumer prices slid 0.3% from a month earlier, while producer prices fell 0.2%. On a year-on-year-basis, producer prices advanced just 2.7% in November, the weakest reading in two years (consumer prices are up 2.2% from a year ago).
Bond traders are taking no chances. Earlier this week, 10-year yields dropped to 3.27%, the lowest in more than 18 months. And, really, they have every reason for gloom considering the headwinds blowing China’s way — and how they may intensify next year. Full Story
The perfect blend of speed and security, contactless payment options make it easy for restaurant owners to improve the dining experience while also cutting costs. Rather than digging through their purse or wallet, customers can simply tap their phone, wristband or key fob over a contactless reader on a payment terminal and complete a transaction within seconds. No PIN or signature is required, making for a quick and convenient payment.
When it comes to security, contactless payment options include many different features designed to stop fraud in its tracks. For example, mobile devices have “virtual” card numbers assigned to them, valid only on those devices. If the device is lost or stolen, the “virtual” card number can be shut down – without impacting the “real” card number or any other mobile devices. Consumers who experience convenience when paying bills also benefit from that convenience when things go wrong.
Card-not-present payment options have drawn a great deal of attention within the past few years – and rightfully so. By enabling diners to complete transactions over the internet, card-not-present payment options cater directly to the fast-paced lifestyles of today’s diners. Although it costs more for restaurant owners to process online payments, that doesn’t diminish the value of card-not-present payment options. The majority of diners order more online or through an app than they do in person. These additional orders more than makeup for the higher fees associated with the card-not-present transaction. fastcasual
Robot Chefs and Labgrown meat
Around 77pc of the tasks carried out by waiter and waitresses can be automated, according to a study by the Center for an Urban Future in New York. When including food preparation, the study claims 87 per cent of the roles carried out by fast-food workers can be done by machines.
There are plenty of examples. French startup Ekim, for instance, wants to speed up the way pizza is made using a pizzaiolo robot. The three-armed autonomous device device is capable of creating a pizza every 30 seconds.
“It’s excellent, I would say there’s no difference between the one created by the robot and human,” said Paul Yong, a guest at last week’s launch event.
Foodservice workers are among the most vulnerable to losing their jobs to robots, according to a recent report from the Brookings Institution. It said 36mn Americans hold jobs with high exposure to automation – meaning 70 pc of their tasks could be replaced by machines using existing technology. Cooks, waiters and other food service staff were named alongside short-haul truck drivers and clerical office workers.
Plant-based substitutes can be found in salads and wraps, and California-based Impossible says it now plans to produce a synthetic steak, a tricky scientific challenge.
Food industry juggernauts including Nestle and US meat giant Tyson Foods, both of which are expected to enter the plant-based meat market this year.
Meanwhile, on Monday KFC said it would test the vegetarian, plant-based chicken for one day in one restaurant in the US state of Georgia.
Complimentary samples of the new product, which was developed in partnership with Beyond Meat and is dubbed “Beyond Fried Chicken,” will be available at the KFC in Smyrna, Georgia on Tuesday, and customers can also buy nuggets and boneless wings made from the non-meat.
“I think we’ve all heard ‘it tastes like chicken’ – well our customers are going to be amazed and say, ‘it tastes like Kentucky Fried Chicken!'” president and chief concept officer for KFC US Kevin Hochman said in a statement.telegraph