Holmes takes the strongest case in The Dao of Capital, by Mark Spitznagel: chapter five, Henry Ford. He built River Rouge, ore in and cars out, and output went from under 600,000 Model Ts in 1916 (585,000) to 2 million by 1923. Turnover hit 370 percent in 1913, so he doubled wages to $5 a day; mark this, cheaper than retraining. Lestrade asks what use a dead carmaker is: profit, to Ford, funded the future, not the past.
The strongest case in The Dao of Capital is chapter five's Henry Ford: he spent years and fortunes building River Rouge, where ore went in one end and cars came out the other, and only then did output explode from 585,000 Model Ts in 1916 to 2 million in 1923; with turnover at 370 percent in 1913 he doubled the wage to $5 a day because it was cheaper than endless retraining, and he treated profit as a fund for future progress rather than a payment for past performance.
On the book: The Dao of Capital by Mark Spitznagel
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The Dao of Capital: Austrian Investing in a Distorted World
Wiley · Jan 1, 2013
