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24
The following appeared in a memo from the president of Viva-Tech, a manufacturer of high-tech medical equipment.
'In order to reduce costs, we should close some of our existing small assembly plants and build a large central plant. Grandview would be an ideal location for this new plant. First, of the locations that we have considered, Grandview has the largest adult population, so that we will be able to staff our plant quickly and easily. Second, since the average wage earned by workers in Grandview is less than that in the other locations, we should be able to keep production costs low. Last, as an inducement for us to build there, Grandview's town council has offered to allow us to operate for the first three years without paying city taxes.
In this argument, the president of Viva-Tech reaches a conclusion that they should close their small plants and build a new central one in Grandview. The reasons cited are that labor force is abundant in Grandview, and that the average wage earned by workers there is minimal among all the locations they have considered. In addition, the president also mentions that they are allowed to operate for first three years without paying city taxes. However, this argument defies simple logic and suffers from several vital fallacies.
Firstly, the president falsely equates the adult population in Grandview with the potential and even necessary workers in Viva-Tech. In fact, it is highly possible that work force there are mainly less educated people who cannot competent with the operation work in that company, or that they merely do not satisfy the work condition in Viva-Tech. Without these considerations above, the president, nevertheless, might not convince us that they will be able to staff their plant quickly and easily.
Secondly, the author assumes that they would keep production costs low since the average wage earned by workers in Grand view is less that that in the other locations. This assumption is unconvincing by the following two reasons: first, the "low average wage" is a mere vague data which cannot indicate the wage given to the workers in the field of manufacturing is low; second, even if the wage is really low in the Grandview, the author might not inform us that the production costs is also in a low level. Common sense tells us that production bears diverse array of factors by involving the price of raw materials, transportation fee and so forth.
Thirdly, even though city taxes would be ruled out in the first three years by the Grandview's town council, it does not mean that they would obtain a huge boon in the long run. Perhaps, the city taxes imposed on that plant might be escalated to a high level after the first three years. With no regard to this probable possibility, the author serves as an ill-considered leader of a large company.
In sum, the argument is not well reasoned and committed vital logical flaw. To better assess the conclusion, the author must make further investigation and comprehensive thought about this issue before the final conclusion and ultimate action. |
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