Dr. Peter Brem showed the effects of the departure of production companies in th

Question

Dr. Peter Brem showed the effects of the departure of production companies in the US from the Taylor/Ford rubric over the period since 1970. Briefly discuss Brem’s findings.

DEPARTURE FROM THE TAYLORISM/FORDISM RUBRIC As seen in Figure 1, the period since 1970 has witnessed a marked departure from the Taylorism Fordism rubric. The blue line illustrates that labor productivity has steadily increased at a mean rate of 3.9% per year, while the red line shows a far slower 1.2% mean growth rate in real wages. Even worse, the green line depicts the rise in the Consumer Price Index (CPI over the same period. Clearly, workers' wages have not even kept up with prices, with the result that America's workers have becoe poorer over the last 45 years in contrast with the rise witnessed over the first 70 years of the 20th century. Table 1 ives the data used to construct these graphs. Where do go from here? We advocate an immediate return to adherence to the Taylorism Fordism rubric that was so successful for three-quarters of the 20th century Clearly, the so called "post-Fordism" period since 1970 has placed an unbearable burden on the American worker. "Post-Fordism" is a term used to describe the shift away from assembly-line mass production to greater automation in production. Those technical developments need not have encompassed the departure from the Taylorism rubric, even though the basic components of Ford's manufacturing rubric have been significantly altered. The essential element in Taylorism-a rise in labor productivity - has remained intact over the "post-Fordism" period; clearly, a correlated rise in labor wages has not. U.S. Output per bour in manufacturing U.S. Real aveage annual copensaton development in manufacturing U.S. Consumer Price Indexes (CPI) Deelopment 20096 150% 160% 140% 120% 100 8096 60% 40% 20% 0% 1970 19T 1974 1976 1973 1980 198 1984 1986 1988 1990 192 1994 1996 1998 2000 2002 2004 2006 2008 2010 Figure 1. Comparing original rOPH, rAAC and CPI 1970-20ln (U.S. Burcau of Labor Statistics 2010) As shown in Figure 1, since 1970 the real average productivity increase has averaged 3.9% per year. During the same period, wages have risen by an average ofjust 1.2% per year. However, the average annual inflation rate since 1970, as indicated by the ConsumeE Price Index (CPI), has grown by an average of 4.3% per year. Hence, there has been a net negative growth in "real wages since 1970, so that the "purchasing power" of the worker's wages have declined over the past four decades in the US. Table 1 gives the actual data for these indices

Explanation / Answer

Answer:

Dr. Peter Brem showed the effects of the departure of production companies in the US from the Taylor/Ford rubric over the period since 1970. The key finding of Brem are as below

·       Over a period of45 years, the output per hour in the US manufacturing is increased continuously and the trend looks to be increasing trend. Thus this shows that the output/hour is increased it means the efficiency had improved in the manufacturing setups.

·       Over a period of 45 years, the compensation of the workers has not improved; it means the payment of the workers/labors has not increased. Thus the US workers have become poorer after the period of 45 years. The output /hour increased, but compensation of worker has not improved, resulted in poorness of workers.

·       The US consumer price index is developed significantly. Thus there is big increase in the consumer prices. It means the US people needs to pay high for purchasing their routine things. Thus purchasing capacity of US citizen is reduced.

·       The Brem’s critical finding is that output per hour increased, consumer price increased but payments of workers has not increased.

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