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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.

The author is arguing that ________________.

(A) higher taxes and unemployment insurance payments will discourage corporations from automating

(B) replacing people through automation to reduce production costs will result in increases of other costs to corporations

(C) many workers who lose their jobs to automation will have to be retrained for new jobs

(D) corporations that are laying people off will eventually rehire many of them

(E) corporations will not save money by automating because people will be needed to run the new machines

Same premise but different question from OG 11 is posted here: https://gmatclub.com/forum/in-many-corp ... 23019.html

Corporations using automation to replace workers to save money.
But increased unemployment will lead to higher taxes and insurance for these corporations.

So basically it is saying exactly what option (B) says: replacing people through automation to reduce production costs will result in increases of other costs to corporations
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adkikani
generis nightblade354 VeritasKarishma Amankatyal Harshgmat

Let me know if my approach to this question is correct since
I am asked for an inference or a main point question.

Quote:
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.

Employees <-> automatic machines (am) to save $
But: same corporations who bring new am will not be able to save $ since

  • they will assist people who are replaced by am with the help of increased taxes.
  • they will have to pay unemployment insurance payments.

Quote:
The author is arguing that ________________.
What is the author trying to say here?

Quote:
(A) higher taxes and unemployment insurance payments will discourage corporations from automating
No idea about the intentions of corporations. Out of scope.

Quote:
(B) replacing people through automation to reduce production costs will result in increases of other costs to corporations
Yes: Other costs = List mentioned above

Quote:
(C) many workers who lose their jobs to automation will have to be retrained for new jobs
Again no such inference can be derived from the passage.

Quote:
(D) corporations that are laying people off will eventually rehire many of them
That's a possibility, but not necessarily true from the argument.

Quote:
(E) corporations will not save money by automating because people will be needed to run the new machines
Why would people be needed to run am? Irrelevant and beyond scope of the argument.

adkikani - You are "spot-on" :thumbup:
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