willbeurdaddy
Posts: 11894
Joined: 4/8/2006 Status: offline
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quote:
ORIGINAL: Fellow Simple logic tells us outsourcing and slave wages do not really work in long term perspective. Who can afford to buy the goods? There is a well known story about Henry Ford ~100 years ago who started paying his workers twice the market wages and his business became a great success. The World goes around. We see just the first signs of the system collapsing. We have PIIGS in Europe and COMA states in the US. (COMA stands for California, Oregon, Michigan, Arizona). Surprising phenomenon is how the governments, the economists, the big corporations and the mainstream news media are jointly executing this scam. Nice Henry Ford reference, too bad you dont understand the real reason behind what he did. "Whether that was Henry's greatest contribution is questionable. Less uncertain is what his primary motivation was in raising employee wages and reducing work hours. It wasn't, as has been argued, because he wanted to establish a solid-middle class to buy his product. Nor was it an act of charity. In the magnate's own words, it was "one of the finest cost-cutting moves we ever made." Henry Ford was acting in his company's best interests. His factories had been plagued with very high turnover rates and excessive absenteeism. This was to be expected. Almost all jobs (at least the ones I've had) are monotonous, but assembly line work, performing the same procedure over and over all day long, must be extraordinarily tedious. Many employees looked for, and found, better alternatives. Hiring replacement workers and training them were too expensive. Something needed to be done. The higher wage Ford offered made the jobs much more attractive. Morale shot up, employee turnover sharply dropped, and, most important from management's perspective, productivity surged. Henry Ford was on his way to being a billionaire." Who can afford to buy the goods? Anyone who's talents and abilities earn them a wage that will allow them to afford it. What logic should actually tell you is that if you add 33% to the cost of a product (because you doubled wages that initially represented about 1/3 of the total cost) you have indeed made the product more affordable for the few thousand workers in your factory. You have also priced out millions out of the tens of millions in your potential market that is working at their actual market value. The only way doubling the wage makes sense is the reason Ford did it...to reduce the overall cost of the product through retention and productivity from morale.
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