Advantages Of The Five Dollar Day

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Another possibility that Ford had for introducing the Five-Dollar Day is known as “efficiency wages.” The term “efficiency wages” describes the “[claim] that workers paid more than the prevailing wage rate will be less likely to shirk for fear of being fired since alternative employment is less attractive” (Taylor 685). Essentially what this means is that Ford was willing to pay his employees more if it meant that they would be more productive, and the reason for their higher productivity being they could not find higher pay elsewhere. Although this plan also appears to be a very plausible reason for the Five-Dollar Day, it has its flaws too. The Ford Motor company started to install its first moving assembly line in April 1913, and after the …show more content…
“Ford claimed his high-wage policy was ‘neither charity nor wages. It [was] simply profit sharing’ (New York Times, January 9, 1914)” (Taylor 687). Ford explained that it wasn’t higher wages the employees were going to receive but profit. “Rather than reducing shirking or quiting rates by making alternative employment less attractive, as would be consistent with efficiency wage theory, workers under a profit-sharing scheme have an incentive to work harder because their pay is directly tied to the firm’s output” (Taylor 687). In explaining the Five-Dollar Day as profit sharing rather than a wage increase, “Ford Motor Company would have a much easier time explaining that the dividends from profits were lower as apposed to a 50 percent wage cut” (Taylor …show more content…
Ford began to publish articles “[blaming] the Jews for everything from the Bolshevik Revolution and the First World War to bootlegged liquor and cheap movies. They also accused the Jews of conspiring to enslave Christianity and destroy the ‘Anglo-Saxon’ way of life” (Logsdon). Logsdon goes on to say that “Ford hired many fascist sympathizers, accepted an award from Hitler; and engaged in business ventures in Nazi Germany.” This is the side of Ford that is not often talked about. Henry Ford has gone down in history as one of America’s greats even though “he spawned an ugly legacy of hatred and bigotry that still has ramifications today” (Logsdon). Ford was “his own man, self-taught; he had earned everything he had on his own; he did not have to step on anybody to make it to the top; he was innovative; there was nothing he could not do if he put his mind, and money, to it” (Alvarado 24). Ford was not afraid to push the limits and venture into unknown territory. This behavior explains why a little farm boy from Dearborn, Michigan was able to leave a lasting impact on American

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