That's not my understanding.
I think the trade off was lower-cost labor or capital investment to reduce that labor.
I think the trade off was lower-cost labor or capital investment to reduce that labor.
The reality is that the first wave of China/Asia boom has been done with cheap labor and minimal capitol equipment. Most of that capitol equipment was cast off American assets.
That wave is coming to an end and Chinese companies are investing in high modern high technology manufacturing.
Similar with Mexico, except that Mexico has more of America's industrial equipment transplanted .
Much of this equipment is getting worn out nearing the end of it's life due to obsolescence.
Due to the bad business climate in the US, much of America's domestic industrial base is being treated as non re investment grade business and is being run into the ground and operated until it becomes non functional.
There is a massive wave of re investment in next generation capitol assets that needs to happen world wide.
It is absolutely critical that as much of that investment occurs in the United States or we will be dead economically.
Anyone who thinks you can run America on a services economy is smoking dope.