Fordism, as an economic theory

Fordism, as an economic theory, centers on the concept of mass production and consumption. It involves a system of standardized production using assembly lines, aimed at producing goods in large quantities at lower costs, while also ensuring workers earn enough to afford those goods. This creates a virtuous cycle of increased production, lower prices, and higher wages, stimulating economic growth.
Here’s a more detailed explanation:
Mass Production:
Fordism revolutionized manufacturing by introducing the assembly line, allowing for the efficient production of standardized goods. This significantly reduced production time and costs, making goods more affordable.
Standardization:
Fordism relies on the standardization of products, minimizing variations and maximizing efficiency in the production process.
High Wages:
A key element of Fordism is paying workers higher wages, often referred to as “living wages,” which allows them to afford the products they are producing. This, in turn, fuels demand and supports further production.
Consumption:
Fordism is based on the idea that a well-paid workforce can drive demand for the products being produced, creating a cycle of economic growth.
Impact:
Fordism transformed industries and cities by concentrating production in large factories and encouraging migration to urban areas for work. It became a model for capitalist development in the 20th century.