The other 90% drops off Ford's balance sheet. The fact that it's spent elsewhere in the economy does not help Ford.
Don't repeat platitudes, build a model. I.e., make up plausible numbers and actually do the math. You'll see that without making wildly ridiculous assumptions, it's just a net loss for Ford.
Yes, great plan!!! Make Ford's employee never expend a penny in anything but Ford's products. Soon enough, Ford will have all the money and his employees will be eating tires and dressing in scrap metal because the rest of the economy collapsed.
Or, may I guess, most of the people that buys Ford's cars does not work directly for Ford.
Okay, so lets pretend that you are right about vanishing money. You are failing to take into account the productivity gains you get from proper rest.
1) Tired workers make costly mistakes, often countering any extra production they may have made
2) Tired workers work more slowly
3) Tired workers miss opportunities to save time through better work methods
Reducing hours towards 32hours /week will usually net you more produtivity per week. Increasing past this will give you temporary improvements, but they won't last beyond a couple of weeks.
Not to mention - the more Ford pays per hour, the better the quality of the workers he attracts.
Comments
The other 90% drops off Ford's balance sheet. The fact that it's spent elsewhere in the economy does not help Ford.
Don't repeat platitudes, build a model. I.e., make up plausible numbers and actually do the math. You'll see that without making wildly ridiculous assumptions, it's just a net loss for Ford.
Yes, great plan!!! Make Ford's employee never expend a penny in anything but Ford's products. Soon enough, Ford will have all the money and his employees will be eating tires and dressing in scrap metal because the rest of the economy collapsed.
Or, may I guess, most of the people that buys Ford's cars does not work directly for Ford.
Okay, so lets pretend that you are right about vanishing money. You are failing to take into account the productivity gains you get from proper rest.
1) Tired workers make costly mistakes, often countering any extra production they may have made 2) Tired workers work more slowly 3) Tired workers miss opportunities to save time through better work methods
Reducing hours towards 32hours /week will usually net you more produtivity per week. Increasing past this will give you temporary improvements, but they won't last beyond a couple of weeks.
Not to mention - the more Ford pays per hour, the better the quality of the workers he attracts.