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If people pay you more, then you can. Ford's money came from products and they have to be priced to cover his higher salaries. That helped his workforce but made cars more expensive for everyone else.

It also only worked because he had a huge first-mover advantage and wasn't facing price-pressure from competition. His grand plan could have bankrupted him in a week if the market hadn't been right for it.




"Ford's money came from products and they have to be priced to cover his higher salaries."

When you drive additional volume you get cheaper output due to economies of scale effects.

There isn't a fixed amount of stuff, any more than there is a fixed amount of money to make that stuff.

Sales depend upon people having the money to buy things. Wages are the major component of profit. And quantity expanding firms will always outcompete and destroy price expanding firms.




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