yastrz
Banned
- Joined
- Mar 3, 2017
- Messages
- 18
- Reaction score
- 7
- Gender
- Undisclosed
- Political Leaning
- Undisclosed
Is EVERY job automated in the US? No.. why not? I thought automation decreases costs and increases profit?
Automation does lower production costs and thereby increase profits. But not every job can be automated. Eating fruits and vegetables will make you healthier. But you can't eat all the fruits and vegetables in the world.
Companies look to reduce costs and increase profits.. and one of those ways is through automation. However, that dynamic is influence by competition and marketshare.
A number of factors, some of which I've pointed to, can affect decisions to automate. But the presence of lower-cost competitors is not required. You originally asked:
Why do you think American companies are automating? Do you think its to compete with lower cost competitors.. like lower wage costs ?
My response is that they automate to reduce production costs and thereby increase profits, and that they would do this independent of the presence of lower-cost competitors.
You said that Mexican manufacturers not automating "puts negative wage pressure" on US manufacturing workers.
it was not a drop in demand for workers that led to higher wages. It was an increase in demand for workers with higher level skills that led to higher wages.
It was an increase in productivity. Less productive manufacturing processes may in fact require a higher level of skill. Which job requires more skill: fashioning parts by hand or simply operating a machine that does the work for you? Computer software programs can perform tasks with a few low-skill clicks that would otherwise require higher levels of worker skill.