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A lot of it is labor costs. There's also the fact that there are other, more lucrative industries for American industry to chase. Everything has tradeoffs. I do
by klmadfejno 6y ago
A lot of it is labor costs. There's also the fact that there are other, more lucrative industries for American industry to chase. Everything has tradeoffs. I don't know if I would say industry left the US due to a failure of any kind. This is kind of the definition of an economic comparative advantage.
- baybal2 6y agoNot true at all, labour costs only make few percents of high value goods you import from third world countries. Even if they were to go up tenfold, it will not make that much of difference. People who moan about labour costs making any difference to modern manufacturing are just keeping regurgitating a myth. In fact, trained manufacturing labour costs in coastal China are now significantly passing that of US averages, and even more so of US flyover states.
- klmadfejno 6y agoI'd guess that most manufactured goods have a margin of a few percentage points.
- iagovar 6y agoLabor cost are way lower in southern and eastern europe.