BY HENRY BRIGMAN
When you see a Ford vehicle, do you ever wonder about the founder of the Ford Motor Company? It is quite fascinating to research history and find out about the man whose innovative ideas were the beginnings of this large and successful venture.
Henry Ford was an American industrialist and founder of the Ford Motor Company whose introduction of the Model T in 1908 and the moving assembly line in 1913 revolutionized manufacturing, making automobiles affordable to the middle class. A pioneer of Fordism—mass production and high wages—he introduced the $5 workday in 1914.
We remember Ford for his new concept of the assembly line for mass production of his Model T automobile. But another innovation by him was just as radical. Many people do not know it.
The $5 workday wage was his other big idea. The unskilled factory worker in 1914 made an average of $2 up to $3 per day. That meager pay kept workers in poverty. They were unable to purchase more than bare necessities. Home ownership and college attendance were not possible. (bing.com/search?q=what +did+the+typical+worker+make+per+ hour+in+1914).
A paycheck from Ford Motors lifted them out of that cycle of hardship. Now they could buy new clothes and spend money on things they never afforded before. Something truly happened to the general economy. Those extra dollars generated profits in other businesses.
One of the most beneficial courses in my college experience was a business class at San Antonio College in 1965. The adjunct teacher was also a successful small-business owner with very practical experience. He said, “Nothing happens until someone sells something.” That is a fact. If nobody is buying, stores close, assembly lines go silent, and people become unemployed.
This teacher also explained how every dollar spent circulates through the business economy many times over. Money spent at the grocery store pays the store’s workers, who then have money to spend on other things they need, thus helping others.
Oklahoma has the state minimum wage set at $7.25 per hour. A person working for forty hours a week earns a gross salary of $290.00, less than $16,000 a year. Taxes take a portion. This reduced paycheck means, at today’s grocery prices, about half of it goes just to have food on the table for the family. Rent, auto expenses, insurance, utilities, and many other necessary expenses means that person struggles with the unrelenting pressure of trying to survive.
Oklahoma’s Bill Question 832 proposes wage increases to be $12.00 per hour in 2027, $13.50 per hour in 2028, and $15 per hour in 2029 (oklahoma.gov/elections/ elections-results/state-questioninfo/ state-question-832.html). Even at $15/hour, a worker’s salary will be just over $31,000 per year, not a high wage in today’s economy. (And chances are, many prices the worker will pay in 2029 will be higher than now.)
Some legislators see the problem, but those future minimum wages will still leave many workers with difficulty paying their bills. They do not help right now, and neither will they help in the future. Inflation is running at almost 4%.
In my view, many legislators have a very short-sighted understanding of how the economy works. Keeping workers so poor they have no ability to buy things only hurts those who have something to sell.
Henry Ford’s vision saw the big picture. His employees were happy. They spent money that generated additional profits throughout the nation’s economy. Not only did they help build one of the most successful businesses in America, but it also still flourishes a century later.
When the Great Depression began, President Herbert Hoover loaned money to big business, but he refused to have a program to give jobs to the working man. The Depression lagged on unabated because businesses did not have enough customers to stay open. The first thing President Franklin D. Roosvelt did was authorize programs to give jobs to the unemployed people. The Civilian Conservation Corps and the Works Progress Administration gave about three million jobs to millions of workers. This governmental action spurred the recovery out of the worst tough time in American economic history.
When legislators cast their votes, it seems wise to remember a pattern for true business success. Henry Ford was not selfish or greedy. He showed us how prosperity comes about. It starts at the bottom with workers who have enough money to spend and contribute to the general wellbeing of our economy.
History proves the way to shift Oklahoma’s economy into high gear: Pay workers decent wages. Oklahoma voters need to pass Question 832.