GMAT Critical Reasoning
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Source: OG
Level: 3
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