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It's simple really, the things that can't be offshored have gotten more expensive. Real estate, education, healthcare...

• StillBored 5y ago
  Its not that they have necessarily gotten more expensive, its just that there is a global rate of inflation and a local one, which results in higher cost/standard of living countries being crushed because their local inflation rate will exceed the global one until the country is pulled to the average. So its just as valid to say that the global products continue to get cheaper. And that was entirely predictable, when a country allows the free flow of capital, and goods but not people then it becomes a race to the bottom in sectors which can move to lower cost areas. There is a certain amount of price suppression for some local goods and the demand dries up, but for things which aren't optional the price will continue to inflate until the system breaks. Infant child care is in this position, the workers competing internationally can't afford to pay for the care of their infants because its local labor intensive. Basically its broken economic policy and its just a matter of time before it explodes. And its probably not fixable because if the cost of labor ever gets equal, then capital is just going to move to the country that say has the smallest carbon tax/whatever. Basically a prereq for free trade should be a common government, and free movement of people.