Feature

Business columns: Misreading Henry Ford’s key lesson

Having stubbornly misread the meaning of “Henry Ford’s five-dollar day,” the administration fails to create jobs or put more money in Americans’ pockets, said Dwight Lee in Investor’s Business Daily.

Dwight LeeInvestor’s Business Daily

One of the most “transparently silly” myths of American capitalism is that Henry Ford more than doubled his workers’ wages to $5 a day so that they could afford to buy his cars, said Dwight Lee. If selling cars to employees was his aim, Ford could simply have offered them discounts. His real goal was to lower production costs. The higher pay drew far more applicants than Ford needed, enabling him to hire the most dependable, hard-working employees. The resulting productivity increases made Ford’s cars more affordable for everyone.

This lesson seems lost on the Obama administration, which perversely seeks to increase purchasing power by raising production costs. Consider Obama-care, which will raise businesses’ costs “in ways that are complex and uncertain.” And if the administration succeeds in making it easier to unionize workplaces, that, too, will “increase the cost and reduce the productivity of workers.” Having stubbornly misread the meaning of “Henry Ford’s five-dollar day,” the administration fails to create jobs or put more money in Americans’ pockets.

Recommended

Ukraine blames Russia for cyberattack
Ukrainian military drill
virtual warfare

Ukraine blames Russia for cyberattack

2 dead from flooding in Peru as damage to Tonga remains unclear
Ash cloud off the coast of Tonga
"like a moonscape"

2 dead from flooding in Peru as damage to Tonga remains unclear

Synagogue hostage-taking suspect was British
FBI Dallas Special Agent in Charge Matthew DeSarno
a not-so-great briton

Synagogue hostage-taking suspect was British

10 things you need to know today: January 16, 2022
Glenn Youngkin
Daily briefing

10 things you need to know today: January 16, 2022

Most Popular

Will 2022 bring another Miracle on Ice?
The Miracle on Ice.
Samuel Goldman

Will 2022 bring another Miracle on Ice?

Omicron may be headed for a sharp drop because so many people are infected
Dr. Janet Woodcock
Omicron Blues

Omicron may be headed for a sharp drop because so many people are infected

California deputy DA opposed to vaccine mandates dies of COVID-19
Kelly Ernby.
covid-19

California deputy DA opposed to vaccine mandates dies of COVID-19