Volti Chapter 2 Questions: Barrett Snyder

  1. Henry Ford’s improvements and refinements to the assembly line process allowed increasingly simple assembly tasks and lower skilled labor to be used. Why did Ford describe raising the wages of his workers to $5 a day as “one of the finest cost-cutting moves we ever made”?
  2. What are the long-term economic advantages to creating a car company based on acquisitions of other brands rather than a single company producing almost only one model of vehicle exclusively?
  3. How did the control of patents affect the development of the early auto industry?

1 comment to Volti Chapter 2 Questions: Barrett Snyder

  • Thanks.

    We discussed the very high levels of turnover Ford faced. Of course the firm could afford this wage, and more.

    Note that economic theory suggests higher productivity should be reflected in wages. The proviso is “full employment.” I don’t know what the macroeconomy was doing in those years.

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