[Erik Latranyi]

What "we"? Are you talking about American workers who are to lower their wage expectations and standard of living to match the Third World levels?

Only those lacking creativity think that competition with the Third World equates to lower wages for American workers.

Competition creates innovations that protect worker salaries and lower product costs at the same time.

[A. Pole]

Competition creates innovations that protect worker salaries and lower product costs at the same time.

I do not get it, how the innovations can protect higher salaries in the global economy? Please explain.

[FITZ]

Competition creates innovations that protect worker salaries and lower product costs at the same time.

I think you have that backward --- labor shortages lead to innovations which increase productivity --- unlimited, very cheap labor doesn't lead to innovations.

One reason a country like the USA took to machines was because of limited cheap labor, countries like Mexico with abundant cheap labor had no need in machines and stayed inefficient.