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By: Geoff Ficke
In the 20th century America the vast majority of people living in rural areas made a living in agriculture. Farms are small, often sharecropping. Planting and harvesting was labor intensive and horses provided the only source of energy for mechanized farming. The vagaries of climate and drought have always made agriculture difficult. The crops were grown mainly for consumption by the farmerâ ™ € s of the family, with no extra produce barter assets required.
We are all aware of the history of Henry Ford and his invention of the production line to mass produce Model-TA € ™ s. Ford did not invent the automobile, simply invented a method for producing cars in mass volumes and make them available to virtually any person wanting to buy a horse, less transport. He also revolutionized the business of farming with totally unpredictable consequences.
The Ford Motor Company was always searching for new avenues of distribution and of business opportunities. Ford grew up in rural Michigan and then plunged into the world of the farm at the time. At the 1920th € ™ s Ford introduced the first mass-produced agricultural tractor, the Fordson. The machine sold for under $ 400 and revolutionized farming. It quickly became cheaper and less costly to possess and maintain a horse's Fordson tractor.
Farmers quickly gravitated to the Fordson tractor. Crop yield per hectare increased exponentially. Farmers produce both crop yield per hectare than the mid-1920th € ™ s that were growing more food that the country could consume. Prices plummeted. The need for laborers was cut sharply and rural unemployment exploded.
The collapse of crop prices, unemployment and the Great Plains drought were major contributors to the start of the Great Depression. The Fordson was a dramatic improvement in productivity and the ability of farmers lead a more comfortable life. However, œLaw € â € Consequencesâ of Unintended shown his dark side in this case. The creative problems caused by this material was dumped in a market that could not adapt efficiently and quickly to its importance.
We have an apparently similar situation occurs today. We constantly read news on the manufacturing sector in the U.S. die. Politicians love to visit the abandoned factories and condemn the decrease manufacturing in a wide range of benefits before industries. And yet, the U.S. manufacturing industry is setting record production volumes, shipped and invoiced. How can there be this dichotomy?
As with Fordson tractors 1920th € ™ s Introduction to farmers, today € ™ s manufacturing has evolved dramatically and has created disruptive technologies. Robots, software, custom models, aided design and modern communications mean that there are increasingly more sophisticated products, higher volume and lower prices, while requiring fewer workers per unit of production. The workers needed today need better education and training of workers in the production line yore.Â
When I was growing up in an industrial area of America in 1960 to € ™ s that many of my contemporaries went to work with parents in the mill local or factory. These were mostly jobs in the Union. Each of my colleagues that it was thought that life would be used for their parents had been. It is estimated that there are none in the beginning, not one.
The shift is as painful as today's farm on the 1920th € ™ s. However, the benefits to society resulting from the manufacturing technologies and modern systems, as well as advances in agriculture due to mechanization, can not be denied. Only the Luddites of the 19th century and not followers believe that modern life is more comfortable and more people today have more access to more goods and services at lower prices than at any time in history.
Change is difficult and often uncomfortable. We live in a time of great changes difference any time in history. The understanding and acceptance of modern realities ensure that most people will benefit from advances in technology. Those who do not want to change and accept the new order of things behind.
Henry Ford did not sell the Fordson tractor with instigating the Great Depression. The product was a small contributor unnoticed. The failure of markets that day to allocate resources and find markets for the huge increases in crop was a failure systemic. Today, we manufacture products that are consumed quickly and create a thirst for more inventions and technological advances. We are all better as result.Â
About the Author:
Geoff Ficke has been a serial entrepreneur for almost 50 years. As a small boy, earning his spending money doing odd jobs in the neighborhood, he learned the value of selling himself, offering service and value for money.
After putting himself through the University of Kentucky (B.A. Broadcast Journalism, 1969) and serving in the United States Marine Corp, Mr. Ficke commenced a career in the cosmetic industry. After rising to National Sales Manager for Vidal Sassoon Hair Care at age 28, he then launched a number of ventures, including Rubigo Cosmetics, Parfums Pierre Wulff Paris, Le Bain Couture and Fashion Fragrance.
Geoff Ficke and his consulting firm, Duquesa Marketing, Inc. (www.duquesamarketing.com) has assisted businesses large and small, domestic and international, entrepreneurs, inventors and students in new product development, capital formation, licensing, marketing, sales and business plans and successful implementation of his customized strategies. He is a Senior Fellow at the Page Center for Entrepreneurial Studies, Business School, Miami University, Oxford, Ohio.
Article Source: ArticlesBase.com – How Henry Ford’s Invention Inadvertently Caused the Depression
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