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Hillary on Wages

bballcrook21
Posts: 4,468
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8/19/2016 8:05:20 PM
Posted: 3 months ago
MYTH: Henry Ford paid his workers double the market rate so they could afford the products that they were paid to make. This is why we need a "living wage."

REALITY: Henry Ford paid these "efficiency wages" to lower the rate of turnover, absenteeism and the associated costs to the firm from either. The competitive free-market is why he raised his wages.

Henry Ford"who had paid his employees a competitive $2.25-2.50, struggled to maintain a satisfied workforce. Ford revolutionized manufacturing with the assembly-line production process, and in a period from 1908-1914, the composition of his workforce changed. The relative speed Ford could produce cars due to standardizing of parts and the specialization of his labor force, reduced the need and costs of skilled craftsman in the production process.

The change in skill level demanded for labor increased greatly the labor supply, and surprisingly, the turnover rates as well. For every 100 positions open, Ford had to hire 370 workers just to keep them filled. Absenteeism had reached 10% a day, further adding to production losses. One would think that with such high demand for these jobs, along with competitive market wages, it would satisfy the requirements to retain and elicit effort from his workforce, but this just wasn"t the case.

Implicit in these high turnover and absenteeism rates are losses incurred by Ford Motor Company. Search costs are those incurred by firms for finding a suitable employee to hire. Moreover, advertising, screening applications and interview processes take time and cost money. Even in low-skilled occupations, almost 22 person-hours are required to fill a vacancy. Even after an employee is hired, general or specific training is often needed before workers are able to produce commensurate with their pay, this training also makes them valuable to competition and their loss more costly to their employer.

By 1914, Henry Ford instituted a 5 dollar a day wage, available only to employees that had been with the company for at least six months. At the same time, only those job applicants that have been living at least six months in the Detroit area would be considered for employment. In the period of March 1913 to March 1914, the quit rate at Ford decreased by 87% and discharges decreased by 90%. Similarly, the absentee rate dropped by 75% from October 1913 to October 1914. Though, this wage increase perhaps didn"t help Ford maximize profits, it did raise morale, effort and productivity.

Sources:
https://www.brookings.edu...
http://www.forbes.com...
http://www.nber.org...
https://www.amazon.com...
If you put the federal government in charge of the Sahara Desert, in 5 years there'd be a shortage of sand. - Friedman

Underlying most arguments against the free market is a lack of belief in freedom itself. -Friedman

Nothing is so permanent as a temporary government program. - Friedman

Society will never be free until the last Democrat is strangled with the entrails of the last Communist.
bballcrook21
Posts: 4,468
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8/19/2016 8:15:14 PM
Posted: 3 months ago
Hillary's claim on why "auto industries" raised their wages to $5 dollars an hour is patently false. To be sure, she really has an incredibly tough time disseminating any information that is actually true.
If you put the federal government in charge of the Sahara Desert, in 5 years there'd be a shortage of sand. - Friedman

Underlying most arguments against the free market is a lack of belief in freedom itself. -Friedman

Nothing is so permanent as a temporary government program. - Friedman

Society will never be free until the last Democrat is strangled with the entrails of the last Communist.
Greyparrot
Posts: 14,291
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8/19/2016 8:35:46 PM
Posted: 3 months ago
At 8/19/2016 8:15:14 PM, bballcrook21 wrote:
Hillary's claim on why "auto industries" raised their wages to $5 dollars an hour is patently false. To be sure, she really has an incredibly tough time disseminating any information that is actually true.

Detroit is the devastated crater, akin to Hiroshima, where humanity has gone wrong.

A mandatory wage policy is a nuclear bomb on jobs. Unions exist as a legalized protection racket straight from the blueprint of the Mafia. Unions are the Napalm to finish off whatever jobs mandatory wages was unable to obliterate.

Weep for Detroit, and learn from the ashes, son.
ColeTrain
Posts: 4,315
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8/19/2016 8:58:21 PM
Posted: 3 months ago
At 8/19/2016 8:05:20 PM, bballcrook21 wrote:

This is the difference between smart business and ignorant politics.
"The right to 360 noscope noobs shall not be infringed!!!" -- tajshar2k
"So, to start off, I've never committed suicide." -- Vaarka
"I eat glue." -- brontoraptor
"I mean, at this rate, I'd argue for a ham sandwich presidency." -- ResponsiblyIrresponsible
"Overthrow Assad, heil jihad." -- 16kadams when trolling in hangout
"Hillary Clinton is not my favorite person ... and her campaign is as inspiring as a bowl of cottage cheese." -- YYW
brontoraptor
Posts: 11,685
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8/19/2016 9:03:19 PM
Posted: 3 months ago
At 8/19/2016 8:05:20 PM, bballcrook21 wrote:
MYTH: Henry Ford paid his workers double the market rate so they could afford the products that they were paid to make. This is why we need a "living wage."

REALITY: Henry Ford paid these "efficiency wages" to lower the rate of turnover, absenteeism and the associated costs to the firm from either. The competitive free-market is why he raised his wages.

Henry Ford"who had paid his employees a competitive $2.25-2.50, struggled to maintain a satisfied workforce. Ford revolutionized manufacturing with the assembly-line production process, and in a period from 1908-1914, the composition of his workforce changed. The relative speed Ford could produce cars due to standardizing of parts and the specialization of his labor force, reduced the need and costs of skilled craftsman in the production process.

The change in skill level demanded for labor increased greatly the labor supply, and surprisingly, the turnover rates as well. For every 100 positions open, Ford had to hire 370 workers just to keep them filled. Absenteeism had reached 10% a day, further adding to production losses. One would think that with such high demand for these jobs, along with competitive market wages, it would satisfy the requirements to retain and elicit effort from his workforce, but this just wasn"t the case.

Implicit in these high turnover and absenteeism rates are losses incurred by Ford Motor Company. Search costs are those incurred by firms for finding a suitable employee to hire. Moreover, advertising, screening applications and interview processes take time and cost money. Even in low-skilled occupations, almost 22 person-hours are required to fill a vacancy. Even after an employee is hired, general or specific training is often needed before workers are able to produce commensurate with their pay, this training also makes them valuable to competition and their loss more costly to their employer.

By 1914, Henry Ford instituted a 5 dollar a day wage, available only to employees that had been with the company for at least six months. At the same time, only those job applicants that have been living at least six months in the Detroit area would be considered for employment. In the period of March 1913 to March 1914, the quit rate at Ford decreased by 87% and discharges decreased by 90%. Similarly, the absentee rate dropped by 75% from October 1913 to October 1914. Though, this wage increase perhaps didn"t help Ford maximize profits, it did raise morale, effort and productivity.

Sources:
https://www.brookings.edu...
http://www.forbes.com...
http://www.nber.org...
https://www.amazon.com...

You cannot say For, success, and common sense in the same sentence...some liberal...somewhere will cry at night, make more excuses for their lack of success, and demand the hard working brontos pay for their sloth. Screw em...
"What Donald Trump is doing is representing the absolute heartbreak, and anger, and frustration at a government gone mad."

http://youtu.be...
Greyparrot
Posts: 14,291
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8/19/2016 9:20:01 PM
Posted: 3 months ago
At 8/19/2016 8:58:21 PM, ColeTrain wrote:
At 8/19/2016 8:05:20 PM, bballcrook21 wrote:

This is the difference between smart business and ignorant politics.

Have you seen recent pictures of Detroit?
ColeTrain
Posts: 4,315
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8/20/2016 1:44:15 AM
Posted: 3 months ago
At 8/19/2016 9:20:01 PM, Greyparrot wrote:
At 8/19/2016 8:58:21 PM, ColeTrain wrote:
At 8/19/2016 8:05:20 PM, bballcrook21 wrote:

This is the difference between smart business and ignorant politics.

Have you seen recent pictures of Detroit?

No, why?
"The right to 360 noscope noobs shall not be infringed!!!" -- tajshar2k
"So, to start off, I've never committed suicide." -- Vaarka
"I eat glue." -- brontoraptor
"I mean, at this rate, I'd argue for a ham sandwich presidency." -- ResponsiblyIrresponsible
"Overthrow Assad, heil jihad." -- 16kadams when trolling in hangout
"Hillary Clinton is not my favorite person ... and her campaign is as inspiring as a bowl of cottage cheese." -- YYW
Greyparrot
Posts: 14,291
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8/20/2016 2:35:02 AM
Posted: 3 months ago
At 8/20/2016 1:44:15 AM, ColeTrain wrote:
At 8/19/2016 9:20:01 PM, Greyparrot wrote:
At 8/19/2016 8:58:21 PM, ColeTrain wrote:
At 8/19/2016 8:05:20 PM, bballcrook21 wrote:

This is the difference between smart business and ignorant politics.

Have you seen recent pictures of Detroit?

No, why?

Lots of boarded up structures.
ColeTrain
Posts: 4,315
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8/20/2016 3:05:50 AM
Posted: 3 months ago
At 8/20/2016 2:35:02 AM, Greyparrot wrote:
At 8/20/2016 1:44:15 AM, ColeTrain wrote:
At 8/19/2016 9:20:01 PM, Greyparrot wrote:
At 8/19/2016 8:58:21 PM, ColeTrain wrote:
At 8/19/2016 8:05:20 PM, bballcrook21 wrote:

This is the difference between smart business and ignorant politics.

Have you seen recent pictures of Detroit?

No, why?

Lots of boarded up structures.

Your point?
"The right to 360 noscope noobs shall not be infringed!!!" -- tajshar2k
"So, to start off, I've never committed suicide." -- Vaarka
"I eat glue." -- brontoraptor
"I mean, at this rate, I'd argue for a ham sandwich presidency." -- ResponsiblyIrresponsible
"Overthrow Assad, heil jihad." -- 16kadams when trolling in hangout
"Hillary Clinton is not my favorite person ... and her campaign is as inspiring as a bowl of cottage cheese." -- YYW
Greyparrot
Posts: 14,291
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8/20/2016 3:18:00 AM
Posted: 3 months ago
At 8/20/2016 3:05:50 AM, ColeTrain wrote:
At 8/20/2016 2:35:02 AM, Greyparrot wrote:
At 8/20/2016 1:44:15 AM, ColeTrain wrote:
At 8/19/2016 9:20:01 PM, Greyparrot wrote:
At 8/19/2016 8:58:21 PM, ColeTrain wrote:
At 8/19/2016 8:05:20 PM, bballcrook21 wrote:

This is the difference between smart business and ignorant politics.

Have you seen recent pictures of Detroit?

No, why?

Lots of boarded up structures.

Your point?

go look
ColeTrain
Posts: 4,315
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8/20/2016 3:24:26 AM
Posted: 3 months ago
At 8/20/2016 3:18:00 AM, Greyparrot wrote:
go look

I don't know what to look for. Can you not just tell me your point?
"The right to 360 noscope noobs shall not be infringed!!!" -- tajshar2k
"So, to start off, I've never committed suicide." -- Vaarka
"I eat glue." -- brontoraptor
"I mean, at this rate, I'd argue for a ham sandwich presidency." -- ResponsiblyIrresponsible
"Overthrow Assad, heil jihad." -- 16kadams when trolling in hangout
"Hillary Clinton is not my favorite person ... and her campaign is as inspiring as a bowl of cottage cheese." -- YYW
Vox_Veritas
Posts: 7,074
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8/20/2016 4:21:54 AM
Posted: 3 months ago
I think that a more effective way of providing a "living wage" is to lower the cost of living, even if this means buying cheaper, lower quality things.
More options should be made available, so that people have cheaper alternatives to choose from. I'd go so far as to suggest that the government build millions of tiny, un-insulated wooden homes and sell them for $40,000 each.
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