In an effort to stop the migration of many of the automobile manufacturing facilities from the Detroit area, Detroit’s City Council is considering passing a statute that would give investment tax credits to automobile manufacturers. This would reduce auto manufacturer’s costs of using capital and high tech equipment in their production processes.

  • As a local union representative you voice your opposition to the statute. Outline the basis of your arguments as a union representative (Hint: consider the impact that the investment tax credit would have on the capital/labor ratio as a result of the increase in the price of capital/price of labor ratio).
  • As a representative for one of the automakers, how would you counter the arguments of the union representative?

Is this part of your assignment? ORDER NOW