The story of Henry Ford's $5 a day wages: not what you think (2012)

Re:The story of Henry Ford's $5 a day wages: not what you th... by philwelch on Sunday March 15, 2020 @02:26PM (#22585464)

Not necessarily! If Boeing decides to pay an employee an extra $50/month, and that employee saves all of that money and spends it on airline tickets, after the money that goes to the airline, the airline workers, the oil companies, and the airports, a small fraction of it returns to Boeing. Whereas if they didn’t pay them that extra $50/month, they would retain 100% of it.

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Re:The story of Henry Ford's $5 a day wages: not what you th... by Talanes on Monday March 16, 2020 @03:04AM (#22590651)

And if every business does this, they all retain the $50/month and none of their employees afford anyone's products.

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Re:The story of Henry Ford's $5 a day wages: not what you th... by iso1631 on Sunday March 15, 2020 @06:15PM (#22587307)

If you pay an extra $50 a month, it forces all the other companies to pay an extra $50 a month, and you get a fraction of everyone's extra $50. If you get 5% of the average $50 a month extra, but only employ 1% of the workers, you make money

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Re:The story of Henry Ford's $5 a day wages: not what you th... by philwelch on Monday March 16, 2020 @02:46PM (#22595997)

If you only employ 1% of the workers and you pay an extra $50/mo, the rest of the market isn’t necessarily going to keep up with you. You’re probably just gonna end up hiring the top 1%. (Which also had a lot to do with Ford’s success, to be fair!)

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