Fordism and Mass Production
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Fordism, a specific stage of economic development in the 20th century. Fordism is a term widely used to describe (1) the system of mass production that was pioneered in the early 20th century by the Ford Motor Company or (2) the typical postwar mode of economic growth and its associated political and social order in advanced capitalism.
Ford Motor Company: factory in Dagenham, England
From origins to crisis
Henry Ford helped popularize the first meaning in the 1920s, and Fordism came to signify modernity in general. For example, writing in prison in the interwar period, the Italian communist Antonio Gramsci discussed the economic, political, and social obstacles to the transfer of Americanism and Fordism to continental Europe and highlighted its potential transformative power when controlled by workers rather than conservative forces. Gramsci’s comments inspired research on postwar Fordism and its crisis.
In its second meaning, Fordism has been analyzed along four dimensions. First, as an industrial paradigm, it involves mass production of standardized goods on a moving assembly line using dedicated machinery and semiskilled labour. Second, as a national accumulation (or growth) regime, it involves a virtuous cycle of mass production and mass consumption. Third, as a mode of regulation, Fordism comprises (1) an institutionalized compromise between organized labour and big business whereby workers accept management prerogatives in return for rising wages, (2) monopolistic competition between large firms based on cost-plus pricing and advertising, (3) centralized financial capital, deficit finance, and credit-based mass consumption, (4) state intervention to secure full employment and establish a welfare state, and (5) the embedding of national economies in a liberal international economic order. Fourth, as a form of social life, Fordism is characterized by mass media, mass transport, and mass politics.
The Fordist mode of growth became dominant in advanced capitalism during postwar reconstruction and is often credited with facilitating the long postwar boom. During the 1970s, however, its underlying crisis tendencies became more evident. The growth potential of mass production was gradually exhausted, and there was intensified working-class resistance to its alienating working conditions; the market for mass consumer durables became saturated; a declining profit rate coincided with stagflation; a fiscal crisis developed; internationalization made state economic management less effective; clients began to reject standardized, bureaucratic treatment in the welfare state; and American economic dominance and political hegemony were threatened by European and East Asian expansion. These phenomena prompted a wide-ranging search for solutions to the crisis of Fordism, either by restoring its typical growth dynamics to produce a neo-Fordist regime or by developing a new post-Fordist accumulation regime and mode of regulation.
Post-Fordism
The term post-Fordism is used to describe both a relatively durable form of economic organization that happened to emerge after Fordism and a new form of economic organization that actually resolves the crisis tendencies of Fordism. In neither case does the term as such have any real positive content. This is why some theorists propose substantivealternatives such as Toyotism, Fujitsuism, Sonyism, and Gatesism or, again, informational capitalism, the knowledge-based economy, and the network economy. Social scientists adopted three main approaches to identifying the post-Fordist regime: (1) a focus on the transformative role of new technologies and practices regarding material and immaterial production, especially new information and communication technologies and their role in facilitating a new, more flexible, networked global economy; (2) a focus on the leading economic sectors that enable a transition from mass industrial production to postindustrial production; and (3) a focus on how major crisis tendencies of Fordism are resolved through the consolidation of a new and stable series of economic and extra-economic institutions and forms of governance that facilitate the rise and consolidation of profitable new processes, products, and markets. However, even decades after the crisis of Fordism emerged in the mid-1970s, debates continue about whether a stable post-Fordist order has emerged and, indeed, whether Fordist stability was a parenthesis in an otherwise disorderly, crisis-prone capitalist system.
Those who believe that a stable post-Fordism has already emerged or, at least, is feasible see its key features as:
- (1) flexible production based on flexible machines or systems and a flexible workforce;
- (2) a stable mode of growth based on flexible production, economies of scope, rising incomes for skilled workers and the service class, increased demand among the better-off for differentiated goods and services, increased profits based on permanent innovation and the full utilization of flexible capacity, reinvestment in more flexible production equipment and techniques and new sets of products, and so on;
- (3) growing economic polarization between multiskilled workers and the unskilled, together with a decline in national or industrial collective bargaining;
- (4) the rise of flexible, lean, and networked firms that focus on their core competences, build strategic alliances, and outsource many other activities;
- (5) the dominance of hypermobile, rootless, private bank credit and forms of cybercash that circulate internationally;
- (6) the subordination of government finance to international money and currency markets;
- (7) a shift from postwar welfare states (as described by John Maynard Keynes) to political regimes that are more concerned with international competitiveness and innovation, with full employability as opposed to jobs for life, and with more flexible, market-friendly forms of economic and social governance; and
- (8) increasing concern with governing local, regional, supranational, and even global economies.
These features of post-Fordism are unevenly developed, and there are important continuities with Fordist conditions even in the advanced capitalist economies. Post-Fordism can also assume different forms in different contexts. And although some commentators believe that post-Fordism will prove stable, others argue that capitalism’s inherent contradictions mean that it is no more likely to prove stable than Fordism before it.
by Bob Jessop
Ford Motor Company
American corporation
Ford Motor Company, American automotive corporation founded in 1903 by Henry Ford and 11 associate investors. In 1919 the company was reincorporated, with Ford, his wife, Clara, and his son, Edsel, acquiring full ownership; they, their heirs, and the Ford Foundation (formed 1936) were sole stockholders until January 1956, when public sale of the common stock was first offered. The company manufactures passenger cars and trucks as well as automotive parts and accessories. It has been one of the most successful automotive brands in marketing history. Headquarters are in Dearborn, Michigan.
Early history: Model T and assembly line
Henry Ford built his first experimental car in a workshop behind his home in Detroit in 1896. After formation of the Ford Motor Company, the first Ford car, the original Model A, was assembled at the Mack Avenue plant in July 1903.
Five years later, in 1908, the highly successful Model T was introduced. Demand for this car was so great that Ford developed new mass production methods in order to manufacture it in sufficient quantities. In 1911 he established the industry’s first U.S. branch assembly plant (in Kansas City, Missouri) and opened the company’s first overseas production plant (in Manchester, England); in 1913 he introduced the world’s first moving assembly line for cars; and in 1914, to further improve labour productivity, he introduced the $5 daily wage for an eight-hour day (replacing $2.34 for a nine-hour day). Assembly-line production allowed the price of the Model T touring-car version to be lowered from $850 in 1908 (equivalent to about 18 months salary for an average wage) to less than $300 in 1925 (equivalent to about 4 months salary for an average wage).
The company’s first international sales branch opened in Paris in 1908. By mid-1914 there were more than 500,000 Model Ts on the roads of the world, by 1923 the company was producing more than half of America’s automobiles, and by the end of the 1920s Ford had more than 20 overseas assembly plants in Europe, Latin America, Canada, Asia, South Africa, and Australia.
The Ford had become the world’s most familiar make of car, with 15 million Model Ts having been produced. In 1927 the last Model T and the first new Model A were produced, followed in 1932 by the first Ford V-8. In 1922 Ford had acquired the Lincoln Motor Company (founded 1917), which would produce Ford’s luxury Lincolns and Continentals. In 1938 Ford introduced the first Mercury, a car in the medium price range between Ford and Lincoln.