HereForTheBeer: I suspect these two things would lead to even more automation. Not sure, though - gotta mull it over a bit more. Given the HR overhead costs (benefits for each employee, and the general cost of HR for each employee), the second one would definitely be a hard sell down here. Combine the two and small business would dry up in a matter of a couple years.
Magnitus: In an economy where you are not forced to work week to week to pay for food and rent, small enterprises would thrive as more people would have the possibility of engaging in them.
Of course, extremely low wage crappy jobs would get into a state of crisis (nobody would want to do them unless conditions improved) though I personally don't consider this a bad thing. People doing the work nobody else wants to do would finally have some leverage and get the pay they deserve for doing thankless work. Also, on a 20 hours week, this kind of physically/emotionally draining soulless work would become more bearable and there would be fewer burnouts.
Also, if everyone's basics are covered in a guaranteed minimum wage, any additional income derived from employment becomes disposable income, which small businesses tend to thrive on even moreso than large corps.
Well, my question comes from: where does the guaranteed minimum wage come from, and who gets it?
If the employer is solely responsible for that wage then that's a very difficult hurdle for small business, especially retail with its already-tight margins. And if its something given to everyone - working or not - then taxes or going to increase a lot, further putting pressure on small business.
This is assuming we're talking something like $40k per year for a family of 3 or 4. Granted, I'm picking an arbitrary number but I don't think it's far off the mark of what folks will consider a living wage down here. So then we're looking at $40 an hour if you combine that living wage with just 20 hours per week, or about 1,000 hours per year.
Now the employer has to hire twice as many people at $40 an hour (with no net increase in the total number of hours paid), along with the 15-45% HR overhead, depending on benefits and the general increase in the admin cost of nearly twice as many employees.
To cover that, consumption would need to go waaaay up. Or huge inflation occurs, which then raises the bar for the living wage.
That's why I suspect automation would increase: employee costs would increase at least twofold, and possibly quadruple. Further, those predicted increases in work volume at the small businesses would not happen overnight; until those gains occurred, the businesses would be hemorrhaging money in greatly increased labor costs. But that's if I'm understanding the two premises the same way that you're thinking of them.
Xenoplant777: The thing is, I like automation of factories - the idea is very altruistic if you think about. People will be able to pursue other interests, the uneducated will be able to get an education instead of needing to work to survive. I can't wait for the post scarcity economy.
Not to mention the enormous increase in worker safety in those workplaces where humans and machinery share the burden of labor.