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There are several things businesses can do: 1. Automate, invest in capital equipment to reduce labor. Instead of manually boxing a product, they can buy an aut
by asdfadsfgfdda 7y ago
There are several things businesses can do:
1. Automate, invest in capital equipment to reduce labor. Instead of manually boxing a product, they can buy an automated packing machine. Or a restaurant can buy tablets to automate ordering.
2. Buy more "processed" input materials, effectively shifting labor to another country. Instead of buying raw lumber to create table legs, a furniture manufacturer would buy pre-made table legs from China.
3. Subcontract to an outside company. Under the ACA, only employers with 50 full time employees are required to provide coverage. So a larger company can effectively divide labor amongst several small companies.
4. Shift to lower labor products. Instead of a sit down restaurant, the restaurant can change to "fast casual", with no waiters.