General Discussion
In reply to the discussion: Fast-Food Strikes Expand Across U.S. to 50 Cities [View all]SunSeeker
(52,087 posts)It's basic Keynesian theory. The best way to boost the economy is to get money to the lowest paid workers, since they will spend it all and create a cascading ripple effect across the economy ("Keynesian Multiplier" . It is what FDR used to get us out of the Great Depression.
By raising his workers' wages up from what was the norm for factory workers at the time, Ford spurred his workers to buy more cars, furniture, bread, etc. In turn, with the increased business, the bakers and furniture makers were also able to buy more cars.
Ford did not "have to" pay his workers as much as he did; he could have gotten the same labor for less. But he was wise enough to see that strategy was self-defeating. Too bad today's CEO's lack the same wisdom.