On January 5, 1914, Henry Ford and his vice president James Couzens stunned the world when they revealed that Ford Motor Company would double its workers’ wages to five dollars a day. This groundbreaking decision for the average Ford assembly line worker salary generated glowing newspaper headlines and editorials around the world. The notion of a wealthy industrialist sharing profits with workers on such a scale was unprecedented.
In the century since, many theories have been posited for Ford’s bold move. Some suggested the increase was to justify assembly line speed-ups. Others speculated it was to counteract high labor turnover due to increasingly monotonous assembly line work. Ford admirers believed it was pure philanthropy and a progressive step towards improving Henry Ford’s workers’ rights. Cynics asserted that it was little more than an elaborate publicity stunt. As usual, the truth lay somewhere in the middle.
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