It is not the employer who pays the wages. He only handles the money. It is the product that pays the wages

It is not the employer who pays the wages. He only handles the money. It is the product that pays the wages

Henry Ford, the founder of Ford Motor Company, revolutionized the automotive industry with his innovative assembly line production methods. One of his most famous quotes is, “It is not the employer who pays the wages. He only handles the money. It is the product that pays the wages.” This statement encapsulates Ford’s belief in the importance of creating high-quality products that meet the needs and desires of consumers.

Ford understood that the success of a business ultimately depends on the value of its products. In the context of his automobile manufacturing business, Ford recognized that the quality and affordability of his cars were crucial to attracting customers and generating revenue. By focusing on producing reliable and affordable vehicles, Ford was able to capture a significant share of the market and establish his company as a leader in the industry.

Ford’s emphasis on the product as the primary driver of business success also had implications for his approach to employee compensation. He believed that by creating a superior product, the company would generate more revenue, which in turn would allow for higher wages for employees. In Ford’s view, the product was the key to creating value for both customers and employees.

Furthermore, Ford’s commitment to producing high-quality products at a reasonable price helped to stimulate economic growth and create jobs. By making cars more affordable and accessible to the average consumer, Ford played a significant role in expanding the automotive industry and creating opportunities for workers in related industries.