Loading...
Loading...
Loading...
How we went from Henry Ford's living wage to today's poverty wages
In January 1914, Henry Ford shocked the business world by more than doubling his workers' wages to $5 per day.
Ford wasn't just being generous. He understood that workers who could afford his cars would become customers. High wages meant low turnover, skilled workers, and a thriving economy.
The result? Annual turnover, which had been running 370%, collapsed. Productivity rose, other employers had to compete for workers, and Ford framed the logic as 'Wages Up, Sales Up': workers with money become customers.
“There is one rule for the industrialist and that is: Make the best quality of goods possible at the lowest cost possible, paying the highest wages possible.”
Minimum wage reaches peak purchasing power ($14.80 in 2025 dollars, CPI-U)
Real minimum wage begins steady decline
Minimum wage raised to $5.15 after 8-year freeze
Three-step increase begins ($5.85 → $7.25)
Minimum wage reaches $7.25 - last federal increase
15 years at $7.25 - longest stretch without increase in history
When employers pay wages too low to live on, taxpayers make up the difference through public assistance programs.
This isn't a safety net. It's a corporate subsidy.