ECO202 Week 2 DQ

ECO202 Week 2 DQ - with which to hire workers. There is a...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
The article I chose was out of the New York Times, written by Catherine Rampell on 09 June 2011. The article zeroes in on a company called Vista Technologies out of MN. This company is spending more on Technology than on hiring new employees. In a nutshell, Technology costs are coming down, so now is a good time to be upgrading technology bases in certain manufacturing sectors. (Rampell, 2011) This implies that worker cost is rising. Vista Technologies says they are having a hard time competing with labor costs abroad, so it makes sense from a business standpoint to replace workers with technology. In my opinion, a company needs to find a balance between capital incentives and tax incentives
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: with which to hire workers. There is a lot of capital incentive right now to modernize manufacturing. Replacing workers with technology is the inevitable result. Our Congress has tried to implement poorly written and poorly implemented tax incentives for companies to hire more workers. Companies that are beholden to stakeholders (of which employees are far down on the food chain) are going to make decisions that reflect this environment. This happened one other time, after the recession of 1982. Works Cited Rampell, C. (2011, 06 09). New York Times Business Day . Retrieved from The New York Times: http://www.nytimes.com/2011/06/10/business/10capital.html?_r=1...
View Full Document

Ask a homework question - tutors are online