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Updated: May 24, 2025
What is the gain if the means for reduction of the net labor cost reduces the profit more than the saving in labor? If doing so results in an actual loss of profit, why is it done? We can readily see that the overhopeful managers may disregard the risk of the money invested, but we cannot see why the relative importance, or rather unimportance, of the labor cost should be so disregarded.
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