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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: DuckTapeSunroof who wrote (71266)	2/22/2015 10:14:41 AM
From: TimF	Respond to of 71588

For any normal or reasonable definition of significant, increasing wages for Ford employees did not significantly increase demand for his product. Certainly not enough, or even remotely close to enough for the extra demand to cause an increase in profits. If only extra demand and extra costs from the increase in wages are considered the increase in wage resulted in a significant loss for Ford. Of course those are not the only two factors. Ford wanted to have a more stable workforce (reducing training costs, lower productivity of new workers, and other costs of turnover), and also wanted to expand the workforce to meet demand that was growing (almost entirely for reasons other then any increase in wages by Ford). In that context (and also in the context of Ford wanting to use the bonus payments to exert more control over his employees), higher pay made sense for Ford.