GGR221H1 Study Guide - Midterm Guide: Tacit Knowledge, Glass–Steagall Legislation, Capital Accumulation
5 Feb 2017
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Increased industrial wages so that the workers could buy a model t in 4 months, creating a lot of potential customers and increasing the entry skill-level set. Manufacturing activities are increasingly located away from management and r&d operations. Branch plants allow firms to access a cheaper and more compliant labour force. Also used to access particular sales or skilled labour markets. Unionization - high wages and inflexible labour force. strikes. Closed shop rules enforced union power (can"t work in factory without being in a union) Older factories are less productive (as wages grew, producers invested less in productivity of the factories need to invest in tech in order to increase productivity) 1970s - car market became more competitive (toyota, honda etc. Branch plants are created to find more compliant workforce. Sc, alabama, mississippi low unionization very poor => lower wages (up to 20% difference) => higher profit margins. but loss in middle class that was the main consumer.
