Companies Using Tax Cuts to Spend on Equipment, Not Workers. "You don't have to train machines"

[Better Believe It]

So this is what many companies are using so-called "job creation" capital investment tax breaks like bonus depreciation for. Not creating jobs, but destroying jobs! BBI



Companies Spend on Equipment, Not Workers
By CATHERINE RAMPELL
June 9, 2011

Workers are getting more expensive while equipment is getting cheaper, and the combination is encouraging companies to spend on machines rather than people.

“I want to have as few people touching our products as possible,” said Dan Mishek, managing director of Vista Technologies in Vadnais Heights, Minn. “Everything should be as automated as it can be. We just can’t afford to compete with countries like China on labor costs, especially when workers are getting even more expensive.”

Two years into the recovery, hiring is still painfully slow. The economy is producing as much as it was before the downturn, but with seven million fewer jobs. Since the recovery began, businesses’ spending on employees has grown 2 percent as equipment and software spending has swelled 26 percent, according to the Commerce Department. A capital rebound that sharp and a labor rebound that slow have been recorded only once before — after the 1982 recession.

“You don’t have to train machines,” Mr. Mishek observes.

Read the full article at:

http://www.nytimes.com/2011/06/10/business/10capital.html?_r=1&ref=us

[Brickbat]

1. Better get that company some tax breaks or something! Maybe that would make him hire somebody.

Someone has to make the equipment, of course. But his quotes make it painfully clear what business today is all about.

[Better Believe It]

3. And they buy most of their job cutting equipment from abroad!

They need more of your job creating business tax cuts President Obama!

[Coyote_Bandit]

2. The companies are just doing what they are legally permitted to do

The real question is why the dumbshit idiot politicians didn't require that companies actually create new and additional jobs in order to avail themselves of those tax breaks.

[AmericaIsGreat]

4. Not getting enough tax breaks imo

Good grief.

[hifiguy]

5. Even worse, according to the article,

the machinery this guy is buying is from overseas - Israel, Germany, etc. So workers are pretty much screwed coming and going.

[Enrique]

6. society must share in the gains from technology

for example, we need to tax Mr. Mishek more because some of his increased profits need to go to people made obsolete by his automation.

[phantom power]

7. This worship of supply side voodoo is going to ruin us

[Brigid]

10. It already has.

Love that sig line, BtW.

[Andy823]

8. Well...

They should stimulate that any tax cuts HAVE to be used to hire new workers, no new workers, no tax cuts! Make them prove that they are using that money for new workers and not new machines so they can actually eliminate more jobs!

[Uncle Joe]

9. Machines rock and are superior to humans!

:yourock:




Thanks for the thread, Better Believe It.

[slackmaster]

11. I have a friend who used to work as a robot mechanic

You definitely DO need to train machines.

[Better Believe It]

12. Kick