Question

Anne, a business researcher, believes that organizations will have to spend a lot of money on employee health care in the future. Her colleague Nick argues that organizations will not have to increase their spending on employee health care benefits.

Which of the following statements weakens Nick's argument?

a) The labor force is expected to grow at a greater rate by 2015 than at any other time in U.S. history.
b) The largest proportion of the labor force is expected to be in the 16- to 25-year age group.
c) The number of workers under 40 years of age will exceed the number of workers 40 years of age or older.
d) By 2022, all baby boomers will be at least 55 years old, increasing the ranks of workers nearing retirement.
e) The total cost of labor in the United States will decrease considerably in the near future.

Answer 1

The statement that 'By 2022, all baby boomers will be at least 55 years old' weakens Nick's argument against increased spending on employee health care, as the aging population will likely require more medical attention, contributing to the projected rise in healthcare spending.

Step-by-step explanation:

Among the options presented, the statement that weakens Nick's argument that organizations will not have to increase their spending on employee health care benefits is: 'By 2022, all baby boomers will be at least 55 years old, increasing the ranks of workers nearing retirement.' This is because as the aging baby boomer population grows older, they will face common healthcare issues like heart conditions, arthritis, and Alzheimer's that necessitate more medical care, potentially increasing health care costs for employers. Furthermore, the healthcare spending is projected to grow annually, and with an increased proportion of Americans over the age of 65, the need for medical care intensifies, thus putting pressure on organizations to maintain robust healthcare benefits for their employees.

Furthermore, the fact that the labor force is expected to grow at a greater rate by 2015 than at any other time in U.S. history (option a) does not necessarily weaken Nick's argument. The growth of the labor force alone does not indicate that organizations will have to spend more on employee health care. Similarly, the proportion of the labor force in the 16- to 25-year age group (option b) or the age of retirement for baby boomers (option d) also do not directly weaken Nick's argument.