In January 1914, Henry Ford startled the world by announcing that Ford Motor Company would
In January 1914, Henry Ford startled the world by announcing that Ford Motor Company would pay $5 a day to its workers. At the time, $5 was about double what the average auto worker made.
A recent article stated that at General Motors, the total cost for wages (not including benefits) is about $40 an hour.
Taking into account just two factors, inflation and Federal Income Tax, is the auto worker from Ford in 1914 or the auto worker from GM in 2014, better off financially? Show the calculations that support your conclusion.
Based upon your assumptions on tax and inflation, how much would the Ford Motor Company worker have had to make in 1914 to be equivalent to what an auto worker at General Motors makes today?