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# In many corporations, employees are being replaced by

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In many corporations, employees are being replaced by [#permalink]

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31 Aug 2011, 03:30
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In many corporations, employees are being replaced by automated equipment in order to save money. However, many workers who lose their jobs to automation will need government assistance to survive, and the same corporations that are laying people off will eventually pay for that assistance through increased taxes and unemployment insurance payments.

Which of the following, if true, most strengthens the author's argument?

A. Many workers who have already lost their jobs to automation have been unable to find new jobs.
B. Many corporations that have failed to automate have seen their profits decline.
C. Taxes and unemployment insurance are paid also by corporations that are not automating.
D. Most of the new jobs created by automation pay less than the jobs eliminated by automation did.
E. The initial investment in machinery for automation is often greater than the short-term savings in labor costs.
[Reveal] Spoiler: OA

Last edited by JarvisR on 18 Jul 2015, 23:59, edited 1 time in total.
OA updated
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Re: In many corporations, employees are being replaced by [#permalink]

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31 Aug 2011, 06:18
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DeeptiM wrote:
In many corporations, employees are being replaced by automated equipment in order to save money. However, many workers who lose their jobs to automation will need government assistance to survive, and the same corporations that are laying people off will eventually pay for that assistance through increased taxes and unemployment insurance payments.

Author's Argument: Automation may not result in reduced expenses in the corporations; on the contrary, laying-off workers may adversely affect them because they will have to pay more in taxes and for unemployment insurance claims.

Which of the following, if true, most strengthens the author's argument?

A. Many workers who have already lost their jobs to automation have been unable to find new jobs.
As author warned, the corporations are indeed bearing the monetary responsibilities for cutting jobs as the people they laid-off are jobless for extended period. Correct.

B. Many corporations that have failed to automate have seen their profits decline.
Weakens. Opposing author's calculated skepticism with automation, corporations that employed it actually saved their own skin.

C. Taxes and unemployment insurance are paid also by corporations that are not automating.
Corporations Counter-argument: So what Mr. Author, what are we to lose. Automation or no automation, we're anyway to bear the burden of both the things you just mentioned. We'll go ahead with our plan anyway; thanks for the heads-up though.

D. Most of the new jobs created by automation pay less than the jobs eliminated by automation did.
Automation were employed for some reasons and this is one among those. Automation did bring down the expenses that the corporations had been paying off as salaries. Weakens.

E. The initial investment in machinery for automation is often greater than the short-term savings in labor costs.
Corporations may be seeking long-term benefits. This is out of scope.

Ans: "A"
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Re: In many corporations, employees are being replaced by [#permalink]

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17 Jan 2012, 17:17
fluke wrote:
A. Many workers who have already lost their jobs to automation have been unable to find new jobs.
As author warned, the corporations are indeed bearing the monetary responsibilities for cutting jobs as the people they laid-off are jobless for extended period. Correct.

Ans: "A"

good reasoning.
First statement says companies are SAVING money. Second statement contradicts with that by introducing the word 'However' with the fact that companies have to pay money for the unemployment they created. With this, A is the only one that fits the bill.
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Re: In many corporations, employees are being replaced by [#permalink]

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25 Jan 2012, 09:02
Very stright A
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Re: In many corporations, employees are being replaced by [#permalink]

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27 Jan 2012, 16:20
+1 A
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Re: In many corporations, employees are being replaced by [#permalink]

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17 Nov 2013, 01:10
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Re: In many corporations, employees are being replaced by [#permalink]

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02 Sep 2015, 11:06
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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In many corporations, employees are being replaced by [#permalink]

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13 Apr 2016, 13:06
Chembeti wrote:
fluke wrote:
A. Many workers who have already lost their jobs to automation have been unable to find new jobs.
As author warned, the corporations are indeed bearing the monetary responsibilities for cutting jobs as the people they laid-off are jobless for extended period. Correct.

Ans: "A"

good reasoning.
First statement says companies are SAVING money. Second statement contradicts with that by introducing the word 'However' with the fact that companies have to pay money for the unemployment they created. With this, A is the only one that fits the bill.

I am not sure i follow the reasoning. Please elaborate a bit

To me option A seemed like this: If people laid off are unable to find new jobs, it is most likely because companies are not willing to hire people as they found a better and more profitable alternative in automation, and are more willing to do so.
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Re: In many corporations, employees are being replaced by [#permalink]

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17 Dec 2016, 14:35
A. However, D has somewhat similar logic, but is wrong because it does not say how much less the new jobs pay.
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Re: In many corporations, employees are being replaced by [#permalink]

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17 Jan 2017, 00:42
This question I feel should be in the form of Find the Assumption. Any thoughts?

Posted from my mobile device
Re: In many corporations, employees are being replaced by   [#permalink] 17 Jan 2017, 00:42
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