Henry Ford and the $5 Day

[Capt Worley PE]

There’s an argument you see around sometimes about Henry Ford’s decision to pay his workers those famed $5 a day wages. It was that he realised that he should pay his workers sufficiently large sums to that they could afford the products they were making. In this manner he could expand the market for his products.

It should be obvious that this story doesn’t work: Boeing would most certainly be in trouble if they had to pay their workers sufficient to afford a new jetliner. It’s also obviously true that you want every other employer to be paying their workers sufficient that they can afford your products: but that’s very much not the same as claiming that Ford should pay his workers so that they can afford Fords.

So, if creating that blue collar middle class that could afford the cars wasn’t why Ford brought in his $5 a day wages, what was the reason?

Interesting read: http://www.forbes.com/sites/timworstall/2012/03/04/the-story-of-henry-fords-5-a-day-wages-its-not-what-you-think/

 

[MA_PE]

The bonus came with character requirements and was enforced by the Socialization Organization. This was a committee that would visit the employees’ homes to ensure that they were doing things the “American way.” They were supposed to avoid social ills such as gambling and drinking. They were to learn English, and many (primarily the recent immigrants) had to attend classes to become “Americanized.” Women were not eligible for the bonus unless they were single and supporting the family. Also, men were not eligible if their wives worked outside the home.

this was particularly interesting.

 

[mudpuppy]

Considering Henry Ford was a Nazi, I wonder if he paid more to Aryans?

 

[Capt Worley PE]

Considering Henry Ford was a Nazi, I wonder if he paid more to Aryans?

I don't think the Ebil Joos were hired by Mr. Ford. Very few folks are aware of Henry's anti-Semetic, Nazi-like tendencies.

Also, the pay was retroactive. You had to work there for a year to get your bonus to $5 day. Until then, you got the normal $2.25.