It seems we have gone to the opposite extreme since the days of Henry Ford where he wanted to pay his workers enough for them to be able to afford the cars they made.
It seems we have gone to the opposite extreme since the days of Henry Ford where he wanted to pay his workers enough for them to be able to afford the cars they made.
Ford raised wages and cut hours because his annual turnover was 300%. He ended up making more money through savings in hiring and training costs and workers staying long enough to gain experience.
In a way it was an expression of worker power. Which only applies because workers are humans, robots don't get tired, they don't have feelings, they don't leave for a competitor paying more. The best ones are more expensive than humans right now, but robots get cheaper over time. Ideally we don't want human labor to get cheaper over time.
Ford offering higher pay and better working hours were for employee retention which was important at the time.