Henry Ford was a horrible man who treated his employees like children and had employment and pay structures which were deeply invasive in their personal lives. He hired private detectives to make sure they were "clean living" and sacked those who were left wing and/or politically active on the left.Or alternatively you could comment on the views offered in the article instead of side-stepping. I like this bit,
"The model for us rich guys here should be Henry Ford, who realized that all his autoworkers in Michigan weren’t only cheap labor to be exploited; they were consumers, too. Ford figured that if he[broken link removed]their wages, to a then-exorbitant $5 a day, they’d be able to afford his Model Ts.
What a great idea. My suggestion to you is: Let’s do it all over again. We’ve got to try something. These idiotic trickle-down policies are destroying my customer base. Any yours too."
I tend to agree with the sentiment here. Increasing wages can drive consumption and in turn increase productivity.
Very rich people negotiate what income tax they will pay in a particular year with the Canton and they then live there. That way the Canton gets X million guaranteed revenue and the very rich person gets to pay bugger all tax as a percentage of their income. They do pay VAT and Property tax and local taxes etc. as Switzerland has a much broader tax base than us.What do you think happens to people when they go to Switzerland???
Henry Ford was a horrible man who treated his employees like children and had employment and pay structures which were deeply invasive in their personal lives. He hired private detectives to make sure they were "clean living" and sacked those who were left wing and/or politically active on the left.
The $5 an hour so they could buy Ford cars was also total Bull. This is why he paid more.
Very rich people negotiate what income tax they will pay in a particular year with the Canton and they then live there. That way the Canton gets X million guaranteed revenue and the very rich person gets to pay bugger all tax as a percentage of their income. They do pay VAT and Property tax and local taxes etc. as Switzerland has a much broader tax base than us.
Oh, thats ok then, we know where they are so. I got the impression from Firefly that they somehow managed to disappear themselves!
I'm not saying that and you know I'm not. I'm saying these people are so rich that they could have houses in dozens of places across the globe and could be at any one of them at any time. Not very helpful if someone is gathering pitchforks, unless it was a worldwide manhunt.
With the Shinners gaining support that's more likely to happen. I always hear the faint echo of jackboots when I hear them talking.Pitchforks was a metaphor. In reality, the election of a facist government and subsequent seizing of assets is more likely what was in mind.
Yes, he knew that he needed to increase wages in order to increase productivity because he was running a production line and wages were a small proportion of his input costs. He also wasn't competing with an international market. That's a world away from the notion that increasing wages will automatically lead to an increase in productivity. Henry Ford couldn't retain the required number of people to run his business; he wasn't paying the market rate because he was the only person in the market and the work was harder that the old way of doing things. He found the market rate and retained the required number of employees.Not really interested in what type of man he was tbh. Im more interested in the effect of the wage increase.
Certainly I would go with your article as to the real reasoning why he increased wages, but nevertheless, the wage increase also increased productivity.
Yes, he knew that he needed to increase wages in order to increase productivity
I am a great believer in paying the market rate.
With the Shinners gaining support that's more likely to happen. I always hear the faint echo of jackboots when I hear them talking.
No, wages increased may be required in order to achieve or sustain an increase in productivity but in isolation they are not the cause.Yes, so we can agree that in the right circumstances wage increases can induce productivity increases?
Not if the market is distorted through a small group of self serving people. It only works when the market is free (capitalism). Otherwise we get inflated packages awarded by a small group to each other.Me too, that applies to the chiefs too.
Europe and the US are stagnating because Asia is more efficient and productive relative to labour costs. We need to compete with them, not make ourselves less competitive. That's fairness and equality on a global level.So what is the market rate? Obviously it will vary from job to job, location, experience etc.
But from a macro level, western economies are stagnating. Growth across Europe, US is lame at best. Oversupply and weak demand. That is why I argue for fiscal stimulus, that is why I argue for economic policies that will increase peoples incomes and stimulate demand.
Instead, monetary policy is trying to stimulate a "wealth effect" through further credit expansion. This is only beneficial for those who accumulate assets. The wealth effect is trickle up economics.
There are bubbles in property, in stocks, in bonds, and...seeing as McIlroy was brought up earlier, bubbles in sport, particularly the Premier League.
Failed protectionist and socialist policies which overheated the economy have been misrepresented as capitalist by a left wing media. A capitalist system would have burned the bond holders, allowed the banks to fail and seen massive pay cuts and cuts in numbers all across the state sector.Well you have to ask yourself, why are they gaining support? Its too lame to say that their supporters are economic illiterates, when its the economic policies of the established parties that is surely pushing people toward them.
Pitchforks was a metaphor. In reality, the election of a facist government and subsequent seizing of assets is more likely what was in mind.
Interesting article here on how the wealthy in China are moving their few bob.
http://www.bloomberg.com/news/features/2015-11-02/china-s-money-exodus
And since the majority of wealth is still concentrated in the USA, it would probably mean a Donald Trump win next month and him writing a 21st century Mein Kampf & growing a mustache for the wealthy there to get worries
Their holding of American Bonds (debt) is of far more concern.I'd be more concerned about China's 'underground' banking system! Ive heard about this before, also their official holding of Gold is apparently underestimated.
I would have thought such factors, if accurate, would be a recipe for financial instability?
Their holding of American Bonds (debt) is of far more concern.
Failed protectionist and socialist policies which overheated the economy have been misrepresented as capitalist by a left wing media.
A capitalist system would have burned the bond holders, allowed the banks to fail and seen massive pay cuts and cuts in numbers all across the state sector.
People don't like reality
Bertie was the only Socialist in the Dail. Harney was the leader of a small minority party but still managed to moderate expenditure and vcut top rates of tax. It was only when socialist Bertie was in power with the socialist Labour Party that things really went nuts.Hard to take that between McCreevey and Harney at the helm for the guts of the 'Celtic Tiger' that they could be accused of protectionism or socialism.
If you are refering to benchmarking I, then while it may have contributed in part to overheating, it was hardly responsible for the scale of the collapse.
No, vested interest groups ( an anathema to capitalism) including "Congress" and the Construction Industry Federation agitated to maintain and boost pro-cyclical economic policies while the country was awash with cheap money.A property and lending bubble seems to have passed your radar.
I know but it hasn't stopped you so farInane generalizations dont really cut it.
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