Sunday, 14 October 2012

Why Henry Ford paid higher wages

Interesting snippet of economic history from Tim Worstall:

Ford wanted to reduce turnover among his workers: he was getting through 50,000 a year in order to have a permanent establishment of 13,500. By paying double the wages of everyone else he reduced his training and recruitment bills. Higher wages actually led to a lower total wage bill.

1 comment:

cav said...


Where I do my volunteer work I'm going to ask for my pay to be doubled!