Using that rationale, all of those jobs will be exported eventually. There is no way we can compete with the labor costs of China and India and the rest of the emerging economies. In fact, China and India also have educated, skilled workers that work for far less than in this country.
If labor costs is the determinant factor, then there is no way we can compete unless our labor wages decline signifcantly. The mulitinational corporations are exporting whole industries, including the latest technology, to these countries making their workers just as productive as our own. And skilled labor jobs can also be exported.
If labor costs is the determinant factor, then there is no way we can compete unless our labor wages decline signifcantly. The mulitinational corporations are exporting whole industries, including the latest technology, to these countries making their workers just as productive as our own. And skilled labor jobs can also be exported.
I'm think labor costs are a major factor, but not the only one. Say a company decides not to use illegal labor, but is surrounded by illegal "workers", who proceed to rob, rape and murder the companies workers, that company may choose to relocate, or maybe they tolerate it, until the workers say "oh hell no, we want more pay if we got to deal with this crap", which then drives the cost of that legal labor up.
We don't have to do a race to the bottom in terms of compensation, if we have a market salary/compensation base, while driving all the other costs down, this will be a better work environment. Keep in mind, that while labor costs overseas are lower, there is associative costs in relocation and training, along with distance and instability. Its why everyone, does NOT outsource what they easily could, while alot still do. Its also why alot of companies will relocate their businesses from union states to right to work states and not go overseas.