Minimum Wage and Automation/Technology

This line of statement strike me when reading this letter on minimum wage  in Malaysiakini:

“Higher wages for workers would force employer to make more capital investment, since higher capital would result in higher productivity per worker. Workers will be equipped with machinery, instead of doing manual jobs. For example in the West, a street-sweeper uses a truck equipped with sweepers which can sweep every street in a city the size of Klang in three hours flat. ”

Hmmm, higher wages will result in machinization, and if machines can do the job more efficiently and thus reduce the dependency on manual labour, it would mean that less people will be required to do the job and thus more people will be unemployed? The way I understand is that: if 1 machine can do 10 persons job, with the new machine in place, the boss only need 1 man to operate the machine and fire the other 9? 

Make sense or not ar?

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