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# Contrary to the statements of labor leaders, the central

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Intern
Joined: 11 Jan 2007
Posts: 44

Kudos [?]: 38 [1], given: 4

Location: United States
Concentration: Marketing, Healthcare
GMAT 1: 600 Q49 V25
GMAT 2: 650 Q49 V32
GPA: 3.5
WE: Pharmaceuticals (Consulting)

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30 Jun 2010, 09:23
1
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1
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Difficulty:

85% (hard)

Question Stats:

50% (01:21) correct 50% (02:08) wrong based on 149 sessions

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Contrary to the statements of labor leaders, the central economic problem facing
America today is not the distribution of wealth. It is productivity. With the
productivity of U.S. industry stagnant, or even declining slightly, the economic
pie is no longer growing. Labor leaders, of course, point to what they consider an
unfair distribution of the slices of pie to justify their demands for further
increases in wages and benefits. And in the past, when the pie was still growing,
management could afford to acquiesce. No longer. Until productivity resumes its
growth, there can be no justification for further increases in the compensation of
workers.
Which of the following statements by a labor leader focuses on the logical
weakness in the argument above?
(A) Although the economic pie is no longer growing, the portion of the pie
allocated to American workers remains unjustly small.
(B) If management fails to accommodate the demands of workers, labor leaders
will be forced to call strikes that will cripple the operation of industry.
(C) Although productivity is stagnant, the U.S. population is growing, so that the
absolute size of the economic pie continues to grow as well.
(D) As a labor leader, I can be concerned only with the needs of working people,
not with the problems faced by management.
(E) The stagnation of U.S. industry has been caused largely by factors—such as
foreign competition—beyond the control of American workers.

[Reveal] Spoiler: OA

Kudos [?]: 38 [1], given: 4

Manager
Joined: 04 May 2010
Posts: 86

Kudos [?]: 129 [2], given: 7

WE 1: 2 yrs - Oilfield Service

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30 Jun 2010, 10:14
2
KUDOS
Let's summarize the argument:

1. Productivity is the central economic problem.
2. When productivity stops increasing - economic pie stops growing.
3. Until productivity starts to increase, wage increase is not justified.

In the argument, some of the opinions of labor leaders and their argument is also mentioned:

1. Distribution of wealth is the problem.
2. The economic pie is distributed unfairly.

What is a logical FLAW in the first argument?

A. Exactly. If you notice, the argument only talks about the overall size of the economic pie, but irrespective of the total size, the allocation to wages may be too small. The argument does not consider this, and instead focuses on talking about the entire economic pie as a whole. This does not resolve the issue of DISTRIBUTION which is independent of total size, and is simply the proportion of each constituent.

B. This is a threat - not a logical flaw.

C. This refutes the evidence cited in the argument, but remember - this is not the main point of the labor leaders. They are more concerned with distribution - not the total size of the pie.

D. This is apathy - not a logical flaw.

E. This does not justify wage increase according the the argument. The causes for the size of the pie are irrelevant, it is the distribution that needs to be changed.

Pick A.

Kudos [?]: 129 [2], given: 7

Intern
Status: fighting hard..
Joined: 12 Jul 2010
Posts: 27

Kudos [?]: 10 [0], given: 24

Schools: ISB, Hass, Ross, NYU Stern

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15 Nov 2010, 02:56
Thanks a lot Abhay Prasanna. Superb explanation..

Kudos [?]: 10 [0], given: 24

GMAT Club Legend
Joined: 01 Oct 2013
Posts: 10110

Kudos [?]: 263 [0], given: 0

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03 Jun 2015, 02:52
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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Re: Contrary to the statements of labor leaders, the central   [#permalink] 03 Jun 2015, 02:52
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