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Re: Man vs. Machine, a Jobless Recovery

By: lkorrow in ROUND | Recommend this post (0)
Tue, 17 Jan 12 7:48 AM | 46 view(s)
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Msg. 38087 of 45651
(This msg. is a reply to 38073 by capt_nemo)

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Fascinating that they offered this one-year writeoff incentive and it could have impacted jobs. Reminds me of y2k when everyone replaced their network equipment, then Cisco, etc., had poor results for years, rather than a more constant expectation....




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The above is a reply to the following message:
Man vs. Machine, a Jobless Recovery
By: capt_nemo
in ROUND
Tue, 17 Jan 12 2:57 AM
Msg. 38073 of 45651

BY TIMOTHY AEPPEL

In no other recovery since World War II have companies been simultaneously faster to boost spending on machines and software, while slower to add people to run them.

Part of this is the old story of substituting capital for labor. But a combination of temporary tax breaks that allowed companies in 2011 to write off 100% of investments in the first year and historically low short- and long-term interest rates have pushed that process into overdrive.

Hiring, meanwhile, is too slow to bring the unemployment rate down rapidly. Employers have added workers at a monthly rate of 142,000 for the ...

http://online.wsj.com/article/SB10001424052970204468004577164710231081398.html?mod=rss_whats_news_us_business


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