Social Science (087) — AI-generated practice question

Henry Ford doubled workers' wages to $5 in 1914 to stop workers from quitting in large numbers due to the stress of assembly line work. He then recovered the high wage cost by repeatedly speeding up the production line, forcing workers to work harder. Ford himself described this as the "best cost-cutting decision" he ever made.

Additionally, higher wages meant workers could now afford to purchase consumer goods like cars, boosting overall demand. Car production in the US rose from 2 million in 1919 to over 5 million in 1929, which greatly benefited Ford's business.

Source: Rise of Mass Production and Consumption, Chapter 3, Section 3.3

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Examiners look for two distinct benefits here:

1. Internal/production benefit — Ford recovered wages by speeding up the assembly line (cost-cutting).
2. External/market benefit — Higher wages increased workers' purchasing power, expanding the consumer market for cars.

Many students mention only one side. Mentioning Ford's own quote ("best cost-cutting decision") adds precision and shows textbook familiarity. Avoid writing a general essay on mass production — keep it focused on how the wage hike specifically helped Ford's business.