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“Presently, automation is proceeding at a relatively slow pace because labor markets are loose and supply is plentiful,” he says. “However, if the incoming . president and the current . government decide to restrict immigration, the market becomes tighter. Similarly, the baby boomer generation are retiring and withdrawing from the workplace, and the generational cohorts following them are less numerous. With tighter labor markets, wage pressures are likely to build, and the solution to protect profits is to invest in more automation. Therefore the worst case is sharpening unemployment.”

[x] Therese McGuire of Northwestern University says that executives at 3M “viewed [tax incentives] as not only unfair but also a signal of a weak, if not desperate, government.”  See Therese J. McGuire.  “State Fiscal Policies and State Economic Growth.”  Presentation for the Civic Federation and the Federal Reserve Bank of Chicago.  April 4, 2013.  Similarly, Drs. Alan Peters and Peter Fisher observe that “firms have shown themselves to be wary of basing location decisions on massive incentive offers.  Very generous incentives may signal a profligate—and thus, in the longer term, expensive—local government.”  See Peters, Alan and Peter Fisher.  “The Failures of Economic Development Incentives.”  Journal of the American Planning Association .  Vol. 70, No. 1.  Winter 2004.

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