a common urban legend, but not true.However, one of Henry Ford's successes was to pay his workers enough to buy his product.
Being able to buy his product was a welcome consequence, not the reason.
Turnover at auto plants was 400%+ per year. Employees weren't sticking around long enough to et skilled at the job, and had to be replace with new untrained folks.
By doubling the wage, retention more than a year became the norm.
Another side effect was that it made getting fired from ford a serious matter--you weren't going to get another job nearly as well paid.
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