Fifty Things You Need to Know About World History. Hugh Williams

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СКАЧАТЬ other end of the market. He won the boardroom battle and after producing a series of small cars came up with the Model T. The car, and the way in which it was produced, became the epitome of industrial progress. Ford introduced a minimum wage for his workers of $5 a day, double the going rate at the time. His competitors thought he was mad, but he stuck to his principles and followed up his wages policy with, first, a sociology department, and then an education department to try and help his workers spend their new-found wealth wisely. Autocratic but benevolent, it was one of industry’s first recognitions that the welfare of employees was an important component in commercial success. ‘There can be no true prosperity,’ Ford announced, ‘until the worker upon an ordinary commodity can buy what he makes.’

       Ford introduced a minimum wage of $5 a day, double the going rate at the time.

      Like all autocrats, Henry Ford found change difficult and challenge impossible. He refused to respond to the need to manage his business in a more structured way, preferring to rely on the instinct and touch that had made it successful in the first place. Good managers left, and when after 1927 the production of his new car, the Model A, ran into difficulties, he hired thugs to terrorise union members and break up their meetings. At the same time he gave vent to his anti-semitic feelings by running a newspaper, The Dearborn Independent, that contained articles hostile to Jews. Hitler would be one of Henry Ford’s strongest admirers. The brilliant mechanic who had put America – and the world – on a road from which it would never look back died in 1947 as a rather disagreeable example of a paranoid tycoon.

      The life of Henry Ford provides a good description of the way in which the world changed during the twentieth century. It was a change that hinged on one thing above all others: the role of the individual as a consumer. Anyone was entitled to anything as long as he could pay for it. Wealth, even luxury, was within the grasp of all. The role of business, supported by new management techniques, was to ensure that consumers received the marketing messages that would encourage them to participate in this new opportunity.

      At the same time as Henry Ford was beginning to manufacture his popular car, another mechanical engineer called Frederick Winslow Taylor published a short book called Principles of Scientific Management. Taylor was one of the world’s first management consultants. A talented tennis player – he was a winning partner in the doubles competition for the first American National Championships in 1881 – he wanted to bring to industry the same precision and efficiency he applied to his sport. Good management, he argued, was the result of carefully designed rules and principles. Workers in America, he said, suffered from the delusion that improved efficiency reduced the amount of labour required; their methods of working encouraged ‘soldiering’ or taking as long as possible to complete each job; and they were organised on a ‘rule-of-thumb’ basis rather than by clear and precise systems. Taylor wanted to achieve the maximum amount of prosperity for both employer and employee and explained how properly defined tasks and responsibilities could achieve this. His ideas followed those of another pioneer in the field of management consultancy, Frank Gilbreth, who not only came up with ideas for improving efficiency but tried to organise his twelve children by the same principles (his efforts were turned into the film Cheaper by the Dozen based on a humorous book written by his son). But the effects of the ideas of men like Taylor and Gilbreth were serious and permanent. They brought to industry – particularly American industry – a belief in the idea of management as a science, even an art, deserving of recognition on the same level as other human activities hitherto regarded as more important or refined. Henry Ford remained very much his own man – an industrial dictator to the end of his working life–but in creating the car plants based on mass production he used many of the principles of ‘scientific management’.

      With mass production went mass consumption. Henry Ford made sure that people bought his cars by setting up a system of dealer franchises across America: there were 7,000 of them by 1912. At the same time he campaigned for better roads and more petrol stations to ensure that his customers had all they needed to enjoy his products more. As his competitors – Chrysler, Packard, Dodge and others – entered the market, the motor car became the symbol of middle-class prosperity. The consumer boom stretched beyond tarmac and gas pumps to shops, cinema and home appliances. In the same year that Ford launched the Model T, Richard Sears was making $41 million a year in sales by offering the nation what it wanted to buy through his mailorder business. Later, as the suburbs sprawled out of the towns, he built department stores all over the country. In Britain, Marks and Spencer began a similar operation, but much more limited in size and with a smaller range of goods for sale. In 1927 the first talking movie, The Jazz Singer, appeared. Six years later, American families could watch a film from their cars as the first drive-in movie theatres were built. Meanwhile radios, refrigerators and sewing machines were selling in huge numbers – often bought on long-term credit plans. The liquid embodiment of American consumerism, Coca-Cola, was a worldwide brand by the end of the 1920s.

      There were attempts to turn the relentless tide of acquisitive prosperity. The American temperance movement successfully lobbied for the introduction of Prohibition in 1919, which for fourteen years, until it was repealed in 1933, banned the manufacture, sale or transport of alcohol. This attempt at applied morality – its supporters called it ‘The Noble Experiment’ – was ultimately unsuccessful. Illegal bars, ‘speakeasys’, mushroomed in their thousands and, as with the modern drug trade, gangsters cashed in on the high profits to be made from illegal but much-wanted goods. In 1929 an economic theorist and writer called Ralph Borsodi inveighed against the way of life that America had adopted in a book called This Ugly Civilisation. ‘America,’ he wailed, ‘is a respecter of things only, and time – why time is only something to be killed, or butchered into things which can be bought and sold.’ Borsodi came from a family of Hungarian immigrants – one of millions that had been attracted to America because of its freedom, particularly its wide, open spaces. For men like him, the nation’s founding fathers had been people who combined qualities of intellectual strength, physical vigour and a belief in the land – virtues that were being strangled in a jungle of greed.

       The consumer the spender – was to be the agent of renewal.

      America, happy and free in its new motor car, was not to be sidetracked. Even when its economy went into severe decline from 1929 as a result of the worldwide depression, the role of the new consumer was actually strengthened rather than weakened. President Roosevelt’s ‘New Deal’, the economic legislation designed to resurrect the nation’s fortunes, provided for consumers to participate in the new authorities he created in order to encourage industrial and financial reform. In the election campaign that first brought him to power he announced that: ‘I believe we are at the threshold of a fundamental change in our popular economic thought, that in the future we are going to think less about the producer and more about the consumer.’ The consumer – the spender – was to be the agent of renewal. The irony was that Henry Ford, who did more than anyone to create the acquisitive citizen whose willingness to spend lay at the heart of economic reconstruction, disliked the idea of government involvement in business and never supported Roosevelt’s reforms.

      The Model T Ford was by some accounts an exasperating car to own. Its popular name was the ‘Tin Lizzie’ and as E. B. White recalled in the New Yorker magazine: ‘The lore and legend that governed the Ford were boundless. Owners had their own theories about everything; they discussed mutual problems in that wise, infinitely resourceful way old women discuss rheumatism.’ Cantankerous, strange, cheap and constantly available, it became a fixture of the American way of life – a symbol of wealth that everyone could aspire to own.

       CHAPTER 10

       The Credit Crunch 2007

      In 2007 the world’s financial markets СКАЧАТЬ