Is it true that Henry Ford paid his workers $5 a day in 1914, and that today this amount is worth $88.50 when adjusted for inflation?

To evaluate whether the statement is true or false, we need to adjust the 1914 pay of $5 for inflation to see what it would be equivalent to today.

In 1914, the Consumer Price Index (CPI) was 10. Today, the CPI is 177. We can calculate the equivalent amount using the formula:

Equivalent Amount = (Old Amount) × (Current CPI / Old CPI)

Substituting the values:

Equivalent Amount = $5 × (177 / 10) = $5 × 17.7 = $88.50

Thus, $5 from 1914 is indeed worth $88.50 today when adjusted for inflation.

Therefore, the statement is true.