Smart business Quote by Hedrick Smith
““Henry Ford gave that idea popular currency when he brought out the famous Model T car and announced in 1914 that he would pay his workers the then unheard-of wage of $ 5 a day. Not only was it a matter of social justice, Ford later wrote, but it was smart business. When wages are low, Ford argued, business and the economy are at risk. But when pay is high and steady, Ford reasoned, business is more secure because workers earn enough to be good customers and eventually to be able to afford to buy Model Ts.””
About This Quote
Source Book: The American Century, Henry Ford, 1979
Higher wages boost workers’ purchasing power, creating a stable market and stronger economy.
In simple terms: Pay more, sell more.
Key Takeaway
Invest in fair wages.
Themes
economics
labor
consumerism
Mood
optimistic
pragmatic
Type
historical
economic
When to use this quote
- manufacturing
- retail
- policy making
- employee relations
Key Concepts
social justice
business strategy
Questions to Reflect On
- How can businesses balance wages and profitability?
- What policies support fair wages?
A Different Perspective
Higher wages may increase costs for small firms.
