Final answer:
Henry Ford paid his workers the high wage of $5 a day to reduce turnover, foster worker loyalty, and generate a consumer base for his automobiles. He standardized an eight-hour workday and offered equal pay across races. His approach both democratized car ownership and contributed to the growth of the middle class.
Step-by-step explanation:
Why Henry Ford Paid His Workers Well
Henry Ford, the founder of Ford Motor Company, implemented a strategy of paying his employees exceptionally well to ensure a stable workforce and to enable them to become consumers of the products they were manufacturing. In the era of the assembly line, Ford doubled wages to $5 a day, significantly higher than typical factory work pay rates. The idea was to reduce high employee turnover due to the monotonous and repetitive nature of the work. By offering this generous wage and creating an eight-hour workday, which was shorter than the norm, Ford also aimed to command employee loyalty and discourage the formation of unions. Additionally, the increase in wages improved employees' standards of living, allowing them to afford automobiles, including the Model T, thereby expanding the market for Ford vehicles.
By the end of the 1920s, car ownership had soared, transforming American society. Ford's practices also encouraged skilled workers to move into neighborhoods further from the factories, contributing to the growth of the middle class. While Ford was hostile to unions and practiced paternalistic oversight of his workers' lives, ensuring they lived by his standards, the financial benefits were significant enough that most workers accepted these conditions.
Furthermore, Ford's assembly line techniques not only increased production efficiency but also removed the necessity for skilled labor, as it was based on repetitive tasks that could be performed by unskilled workers. This democratization of the labor force allowed Ford to hire a larger workforce, including African Americans from the South, and pay them equal wages regardless of race, attracting significant migration to cities like Detroit.