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Re:Japan auto companies triple Mexican pay rather than move ... by AnthonyMouse on Wednesday July 01, 2020 @09:15PM (#23708901)
> Yes. The key word there is intentional.

You're basically arguing that businesses are run by people who can't compare numbers to each other.

If automation costs less, as it often does, then businesses will adopt it because it costs less, because lowering costs increases margins (or volumes, if the lower costs are passed on).

> Indirectly. Output directly increases from higher production capacity. Wishful thinking and consumer desire do not transform manufacturing without some changes to that manufacturing.

Not indirectly. If there is demand for 5000 cars at a given price and you suddenly gain the capacity to manufacture 10,000 cars at that price, you still aren't going to manufacture 10,000 cars unless you expect somebody to buy them. Having the capacity without the demand is nothing.

And having the demand without the capacity would only cause businesses to expand capacity, whether through automation or otherwise. If it was profitable to make 5000 cars by hand and there is demand for 10,000 cars at that price then they would just hire twice as many people to make them if nothing else.

Re:Japan auto companies triple Mexican pay rather than move ... by austincheney on Wednesday July 01, 2020 @10:39PM (#23709386)
Automation in almost every case costs substantially more, but frequently results in a lower cost per unit. Comparing variable numbers is algebra but this is a calculus problem.
Re:Japan auto companies triple Mexican pay rather than move ... by AnthonyMouse on Wednesday July 01, 2020 @11:42PM (#23709753)
> Automation in almost every case costs substantially more, but frequently results in a lower cost per unit.

Which is why you amortize the up-front cost over the expected number of units adjusted for time value of money. In which case the automation often still results in lower overall costs.

> Comparing variable numbers is algebra but this is a calculus problem.

Calculus still leads to comparing numbers. Businesses know how to do calculus.

Re:Japan auto companies triple Mexican pay rather than move ... by austincheney on Thursday July 02, 2020 @12:02AM (#23709878)
Algebra results in numbers. Calculus results in functions. Businesses that plan well know when not to invest in automation changes.