Watch the following video (https://vimeo.com/62709769) on how Herr\'s potato chi
ID: 1143689 • Letter: W
Question
Watch the following video (https://vimeo.com/62709769) on how Herr's potato chip company increased its prodcution capacity and essetially made more with less/same amount of inputs. This short video reminds me of the Libby's pumpkin cannery in Morton, IL (The Morton plant contributes fewer than 20 full time jobs yet produces over 80% of the country's canned pumpkins per year).
In the same vein, watch Andrew McAfee's "What will future jobs look like?" at
(http://www.ted.com/talks/andrew_mcafee_what_will_future_jobs_look_like.html)
Consider the life of Ted versus Bill and how they are diverging.
After watching the short videos, comment on the following:
1. What are some of the positve and negatives of automization of U.S. manufacturing/food processing jobs? Another way to ask this question is who gains and losses from these technologies?
2. What role for automation in keeping prices down or lowering inflation?
3. What can be done for Bill as the New Machine Age continues/approaches?
Explanation / Answer
Answer:- The automization in the U.S. manufacturing/food processing jobs has benefited the producers in a great deal as greater production efficiency and productivity has reduced to cost of production and thus they can produce more quantity of the output in comparison to past. His increased productivity has really benefited them in the form of greater revenue generation and profit.
Apart from the producers, customers are also one of the beneficiaries of this improved productivity as with the increased production level, the cost of production has decreased making the products cheaper and even the quality of the products is also improved significantly.
On the other hand, the labors are at disadvantage as with the automization of the various activities, the demand of labor has reduced significantly and thus there is a huge gap in demand and supply of the labor which would increase the unemployment and reduce the wage rates due to excess supply of manpower.
Answer:- Automization has played a major role in bringing the price down as the cost of production has reduced significantly, quality and defects are improved. The requirement of labor has reduced as now the work of 4 workers is being done by a single labor. All these factors reduce the cost of production and in turn the price of the product.
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