Argument 176 Arg 176 lower corporate tax rate and same unemployment rate-o
The following appeared as part of an article in a Dillton newspaper.
"In an effort to bring new jobs to Dillton and stimulate the city's flagging economy, Dillton's city council voted last year to lower the city's corporate tax rate by 15 percent; at the same time, the city began offering generous relocation grants to any company that would move to Dillton. Since these changes went into effect, two new factories have opened in Dillton. Although the two factories employ more than 1,000 people, the unemployment rate in Dillton remains unchanged. The only clear explanation for this is that the new factories are staffed with out-of-town workers rather than Dillton residents."
Write a response in which you discuss one or more alternative explanations that could rival the proposed explanation and explain how your explanation(s) can plausibly account for the facts presented in the argument.
G1: In an effort to bring new jobs to Dillton and stimulate the city's flagging economy, Dillton's city council voted last year to lower the city's corporate tax rate by 15 percent;
G2: at the same time, the city began offering generous relocation grants to any company that would move to Dillton.
G3: Since these changes went into effect, two new factories have opened in Dillton.
G4: Although the two factories employ more than 1,000 people, the unemployment rate in Dillton remains unchanged.
C1: The only clear explanation for this is that the new factories are staffed with out-of-town workers rather than Dillton residents."
G1 is parallel to G2
(G1,G2) G3
G3 is parallel to G4
(G3,G4) C1 (C1 is an explanation of G4)
A1(G1): Tax cut would necessarily stimulate the factories to hire more workers and create more jobs.
A2(G2): The companies attracted by the relocation grants do not affect the existing companies in the city.
A3 (G3): The local people have the skills that the new factories need.
A4 (G4): Thew newly hired workers are previously unemployed people.
not sure arguments for explanation could be analyzed using Toulmin's model; need to look at more examples
fact to be explained: unemployment rate remains unchanged
explanation: new factories hire out-of-town workers
other facts: corporate tax rate lowered; relocation grants
other alternative explanations
unemployment rate is the number of workers out of job over the total workforce
Job loss due to tax cut
- as a result of tax cut, the city government may have to reduce its expenditure; as a result, fewer jobs are available in the government and other organisations relying on government funding
- the job loss in public sector may lead to less consumption which reduces the jobs available in the private sector
Job loss due to relocation grants
- relocation grants may attract factories that compete against the local factories for resources, business opportunities and workers
- local factories may have to lay off some workers
- part of the 2000 workers hired by the new factories may come from the local factories
lack of skills of the local workers
- the local workers especially those that are jobless may not have the appropriate skills demanded by the new factories
- which explains why the factories are staffed by out-of-town workers
- hiring out-of-town workers is not the ultimate reason
increasing number of people seeking jobs
- due to the poor economy, more people seek for jobs
- stay home mums need to work as the husbands could not make enough money
- students did not get offers to graduate schools and join the workforce