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What is fordism and what does it have to with manufacturing
In 1910 a new phrase was coined after Henry Ford, the new phrase was "fordism". Fordism is an economic philosophy that prosperity and high corporate profits could be achieved through paying the workers high wages. By paying the factory workers higher wages they would be able to afford to buy the products that they are manufacturing. The more people that can afford to buy the products that are being manufactured the better the manufacturing companies will do, which means they will be successful and the companies will increase their profits. The great thing about this concept was that it actually worked; Henry Ford was the proof of that because of how successful he was with selling his automobiles.
Before Western Europe adopted fordism to help their manufacturing they practiced something called talyorism, which is related to fordism. Fordism is also related Keynesianism. Marxists who adopted fordism used it as a term for a "form of production", Marxists in all countries soon adopted this new theory because it consisted of domestic mass production and stabilizing economic policies that provided national demand and social stability by paying higher wages and offering other economic policies. Fordism has a lot to do with manufacturing because during the period following World War II all western countries experienced a long cycle of mass production and mass consumption. What this meant for manufacturing companies was that they were constantly producing goods for the consumers to buy and the consumers were buying them as fast as they could. Fordism helped manufacturing companies by providing standard ways of mass producing certain items by using a moving assembly line, what this meant is that they could manufacture more goods in a shorter period of time. |
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