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To: justshutupandtakeit
Gee, now why didn't Henry just raise wages when the Depression hit?

How do YOU explain the fact that most of FoMoCo's customers early on were also it's employees? (Of course it couldn't possibly have anything to do with the fact that FoMoCo paid it's employees far more than the prevailing wage at the time could it?)

659 posted on 05/19/2005 11:28:51 AM PDT by Bigun (IRS sucks @getridof it.com)
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To: Bigun

In the first place "most" of Ford's customers were NOT Ford employees. No business could survive for long if that were the case.

In the second place I would say that the onset of WWI had a great deal to do with Ford's success at that time rather than his paying a higher than usual wage.

In the third place there are certainly reasons to pay your workers well: higher morale and productivity, less turnover in the labor force and lower costs of retraining etc., but the fact is that unless the marginal revenue product of the worker is higher than the wage rate the company becomes unprofitable and goes out of business.

And you evaded MY question.


686 posted on 05/19/2005 1:18:21 PM PDT by justshutupandtakeit (Public Enemy #1, the RATmedia.)
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