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100th Anniversary of “Fordism” — Henry Ford economic argument to increase pay

January 5, 2014 - UNITED STATES

One hundred years ago on 5 Jan 2014, following the commercial success of his Model T Ford auto, industrialist Henry Ford doubled his workers' wages from US $2.40 per day to US $5 per day and shortened their working day by one hour.

He reasoned that since it was now possible to build inexpensive cars in volume because of his innovative assembly line production, more Fords could be sold if employees could afford to buy them.

So-called Fordism was invoked ahead of the 2012 election by Democrats as a cure for the ailing economy and mainly scorned by Republicans. President Barak Obama, a Democrat, won. He has called on Congress to raise the federal minimum wage, but there is no relief in sight for the so-called working poor.

Henry Ford's $5-a-Day Revolution

The Economics of Henry Ford May Be Passé (NYT 5 Apr 2006)

Henry Ford's Arithmetic a Timely Reminder (Huffington Post 10 Sep 2012)

Date written/update: 2013-11-20