A century ago, Henry Ford startled the world by doubling his workers' wages, with some reaching the unheard-of level of $5 a day. Although accounts of Ford's motivation differ, his decision fit into a larger context: A mass-production economy requires a mass-consumption society. In the absence of broad-based, steadily rising purchasing power, the engine of economic growth will sputter and die.

Fast-forward four decades to the day in the early 1950s that a Ford executive was showing United Auto Workers President Walter Reuther...