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The way in which the benefit derived from lower cost through automation is shared out between the interests concerned gives rise to economic problems of considerable importance. The arguments in favor of each of these interests grossly oversimplify a highly involved situation. If the worker's claims were to be satisfied in full by increasing wages and/or reducing working hours to the full extent of the saving of costs affected by the new machinery, very wide differentials would develop in wages in various industries. If the demand for using the cuts in cost entirely in lowering prices were to be complied with, it would mean that the less efficient firms would be counted out of existence. If the benefit were to be allowed to increase profits to be distributed to shareholders, there might not be sufficient addition to consumer demand to absorb the additional goods to be produced. If all additional profits were to be ploughed back into the firms, it would provide opportunities for 'takeover bids'. The solution lies obviously in compromise.