Yeah, it's better to have them on some sort of welfare ./s”
You have the causation reversed. Increases in the minimum wage and more stringent OSHA regulations, among other things, made labor too expensive for domestic firms to manufacture most textile products and apparel at prices affordable to the middle class. You can still buy a hand-stitched shirt made in the USA, but be prepared to pay close to $100 for it.
The HBO documentary Schmata, Rags to Riches to Rags tells the story very well.