America's true job creators
Inequality is a current major focus in America's national political debate. Republicans implacably oppose increasing taxes on the rich because such a move would punish 'job creators.' Another one of the 1% doesn't accept this narrative and almost a century ago, in January 1914, Irish-American Henry Ford startled the world by announcing that Ford Motor Company would pay $5 a day to its workers. It more than doubled the average autoworker's wage and having introduced the moving assembly line in 1913, Ford had reasoned that since it was now possible to build inexpensive cars in volume, more of them could be sold if employees could afford to buy them. We reported on Finfacts Premium last month that US worker pay has fallen to a 50-year low as a ratio of company sales and US GDP (gross domestic product). On Thursday, The Financial Times reported that if wages were at their postwar average share of 63%, workers would earn an extra $740bn this year, about $5,000 per worker, according to FT calculations.
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