Kira:
Until such time as the US is dethroned as the leading consuming nation of the world, it will remain the largest market in the world in which to dump product from the over capcitized manufacturing world for some time to come. We are the gluttons of the world . . . plain and simple. The US does have a function in that respect or until other countries that manufacture can consume the product they manufacture at equivalent levels as the US to sustain themselves. China should surpass the US (if it hasn't yet) in manufacturing capability in the next year or so.
One could argue the higher prices paid establish the base for the infrastructure in which citizens live; but, that is really not the issue now is it? Simply speaking, you can't buy pure American Manufactured Product because it doesn't exist as the components of the product are made globally.
Since a large percentage of productivitity gains from the last 20-30 years have been directed into profits and have not been shared with labor with any magnitide; income has remained substanitially less than what it should have been if not stagnant, than if shared. If the trend continues, and it will, it will have a far greater impact on income than prices will over the next decade. Now magnify this globally and the dream of global equity may fall far short of expectations as automation continues to eliminate the need for labor, cheap or not. Do you truly believe industry is promoting globalization for the environment and safe labor practices? Are all WTO contracts signed the same or do many have exceptions carefully written into them?
The real issue is what to do with the glut of labor sitting on the sidelines and the growing population that may never have a chance to work. The highest percentage of the noninstitutional civilian population engaged in the civilian labor force was experienced in 2000. It has been down hill since then with ~2% more of the population twiddling their thumbs these days. It will get progressively worst until there is greater job creation and until the US switches to creating products and services of value.
While Nick may have a 20th century argument; however, your response lacks foresight and isn't much better. Automation will eliminate the need for either cheap or expense labor whether it is building good or poor products and the profits will become even more focused and away from labor negating the spread of benefits.
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