Editing Henry Ford (section)

=====Five-dollar wage=====
[[File:Timehenryford.jpg|thumb|upright|''[[Time (magazine)|Time]]'' magazine cover, January 14, 1935]]
Ford was a pioneer of "[[welfare capitalism]]", designed to improve the lot of his workers and especially to reduce the heavy [[turnover (employment)|turnover]] that had many departments hiring 300 men per year to fill 100 slots. Efficiency meant hiring and keeping the best workers.<ref>Nevins and Hill (1957), 2: 508–540.</ref>

Ford astonished the world in 1914 by offering a $5 daily wage (${{Inflation|index=US|value=5|start_year=1914|r=0}} in {{Inflation/year|index=US}}), which more than doubled the rate of most of his workers.<ref>Using the [[consumer price index]], this was equivalent to $111.10 per day in 2008 dollars.</ref> A [[Cleveland, Ohio]], newspaper editorialized that the announcement "shot like a blinding rocket through the dark clouds of the present industrial depression".<ref>Lewis, ''Public Image,'' p. 71.</ref> The move proved extremely profitable; instead of constant employee turnover, the best mechanics in Detroit flocked to Ford, bringing their [[human capital]] and expertise, raising productivity, and lowering training costs.<ref>Nevins, ''Ford,'' 1: 528–541.</ref><ref>Watts, ''People's Tycoon,'' pp. 178–194.</ref> Ford announced his $5-per-day program on January 5, 1914, raising the minimum daily pay from $2.34 to $5 for qualifying male workers.<ref>{{cite news |url=https://www.npr.org/2014/01/27/267145552/the-middle-class-took-off-100-years-ago-thanks-to-henry-ford |title=The Middle Class Took Off 100 Years Ago ... Thanks To Henry Ford? |work=NPR.org |last=Ciwek |first=Sarah |date=January 27, 2014 |access-date=July 29, 2021 |archive-url=https://web.archive.org/web/20220106033815/https://www.npr.org/2014/01/27/267145552/the-middle-class-took-off-100-years-ago-thanks-to-henry-ford|archive-date=January 6, 2022|url-status=live}}</ref><ref>{{cite web |url=https://learning.blogs.nytimes.com/2012/01/05/jan-5-1914-henry-ford-implements-5-a-day-wage/ |archive-url=https://web.archive.org/web/20220206105248/https://learning.blogs.nytimes.com/2012/01/05/jan-5-1914-henry-ford-implements-5-a-day-wage/|archive-date=February 6, 2022|title=Jan. 5, 1914 : Henry Ford Implements the $5-a-Day Wage |website=The New York Times |author=The Learning Network |date=January 5, 2012 |access-date=July 29, 2021 |url-status=live}}</ref>

Detroit was already a high-wage city, but competitors were forced to raise wages or lose their best workers.<ref>Watts, ''People's Tycoon,'' pp. 193–194.</ref> Ford's policy proved that paying employees more would enable them to afford the cars they were producing and thus boost the local economy. He viewed the increased wages as profit-sharing linked with rewarding those who were most productive and of good character.<ref name="Ford_Crowther_1922_pp126-130">{{Harvnb|Ford|Crowther|1922}}, [https://books.google.com/books?id=4K82efXzn10C&pg=PA126 pp. 126–30].</ref> It may have been [[James Couzens]] who convinced Ford to adopt the $5-day wage.<ref>Lewis, ''Public Image,'' pp. 69–70.</ref>

Real profit-sharing was offered to employees who had worked at the company for six months or more, and, importantly, conducted their lives in a manner of which Ford's "Social Department" approved. They frowned on heavy drinking, gambling, and on what are now called [[deadbeat parent|deadbeat dads]]. The Social Department used 50 investigators and support staff to maintain employee standards; a large percentage of workers were able to qualify for this "profit-sharing".<ref>{{Cite web|last=|first=|year=1915|title=Helpful Hints and Advice to Ford Employes [sic]|url=https://www.thehenryford.org/collections-and-research/digital-collections/artifact/367411/|url-status=live|archive-url=https://web.archive.org/web/20211119152200/https://www.thehenryford.org/collections-and-research/digital-collections/artifact/367411/|archive-date=November 19, 2021|access-date=February 13, 2021|website=www.thehenryford.org|publisher=Ford Motor Company|location=Detroit|pages=8–9|language=en}}</ref>

Ford's incursion into his employees' private lives was highly controversial, and he soon backed off from the most intrusive aspects. By the time he wrote his 1922 memoir, he spoke of the Social Department and the private conditions for [[profit-sharing]] in the past tense. He admitted that "paternalism has no place in the industry. Welfare work that consists in prying into employees' private concerns is out of date. Men need counsel and men need help, often special help; and all this ought to be rendered for decency's sake. But the broad workable plan of investment and participation will do more to solidify the industry and strengthen the organization than will any social work on the outside. Without changing the principle we have changed the method of payment."<ref name="Ford_Crowther_1922_p130">{{Harvnb|Ford|Crowther|1922}}, [https://books.google.com/books?id=4K82efXzn10C&pg=PA130 p. 130].</ref>