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

Re:The story of Henry Ford's $5 a day wages: not what you th... by rhino369 on Sunday March 15, 2020 @05:05PM (#22586754)
It just doesn't make sense to pay your employees more in hopes that they will spend more and you'll get the revenue back.

Even if you could capture 100% of their extra pay (an absurd assumption, realistically 2% is huge) you are better off just keeping that money yourself since you'll have to provide them with whatever product/service you sell, which costs money.

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Re:The story of Henry Ford's $5 a day wages: not what you th... by chromatic on Sunday March 15, 2020 @05:37PM (#22587032)
It just doesn't make sense to pay your employees more in hopes that they will spend more and you'll get the revenue back.

Not even if their marginal propensity to consume is high?

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