Quote:
Originally Posted by bomelia
Celby,
Steve, its a terrible circle, is it not? Pay them more so they can afford the product, then raise the price so they can get paid more to buy the product. 
Mike |
Well, it worked for Ford (and it is actually more complex than that).
Ford dropped the price of his product significantly - this allowed more customers the means to afford his product and he was able to take advantage of the economy of scale. Ford was then able to hire the best workers, and further increase his productivity. The ones didn't make the cut then had to learn how to be more productive in order to compete in the workforce.
Japan did the same thing to the US when they first entered the market.
Steve