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Q. Assume that Company ABC is replacing workers on the manufacturing floor with robots and other machines. Company XYZ uses overseas labor that is much less expensive than hiring floor workers. On the one hand, this will allow Company ABC to compete with Company XYZ. On the other hand, the automation will eliminate many "floor jobs."
1. Are you concerned that automation may increase unemployment or underemployment in the United States and around the world? Why or why not?
2. Can innovation, education, and knowledge somehow change this? How?
3. As to Company XYZ, what are the advantages of it using cheap labor from overseas rather than (a) hiring floor workers in the United States or (b) using robots and machines?
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