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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 law that would give investment tax credits to auto manufacturers. What this means is that it would reduce auto manufacturers’ costs of using capital and high tech equipment in their production processes. On the evening of the vote, local union officials voiced serious objections to this statute.
1. As a union official, outline the basis of your argument.
2. As a representative of one of the auto manufacturers, how would you counter the union officials’ argument?