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by philwelch 4631 days ago
Ford raised wages so he could hire the best workers and retain them in a competitive hiring environment in a growing industry. The main reason his workers could afford his car wasn't because they were paid so much, but rather because Ford reduced his production costs overall so that the car cost so little. A lot of that probably had to do with being able to demand a lot from his workers because he could hire the best factory workers.

Paying your workers enough to buy your own products is mathematically impossible to profit from--they're just paying you back money you paid them in the first place, and they can't pay you more than 100% of their salary, so you always pay them more than they pay you.