Other World Economic Factors
Here are a few other world economic factors that belie the decision to outsource vs. locally produce.
Shipping cost of finished goods vs. high cost of local production. High labor costs often drive the decision to outsource manufactured goods that are offset by the relatively cheap cost of shipping. We have a robust shipping system that makes the economics workable. Why is it cheaper and more economical for a frozen food producer to import Chinese grown produce from China, than it is for a local farmer to grow and deliver the same product?
Manufacturing of mass market products by robots vs. humans. Human labor for mechanized products is easily supplanted by less costly robotic processes. Robots do the same thing reliably over and over and stay healthy for the most part. No insurance, no healthcare, no retirement.
Population growth of consumers vs. producers. The demand for products grows while the ability to produce shrinks. Our education system doesn't lend itself to sophisticated worker/producers, but rather an ever expanding cadre of people who have limited skills for an ever diminishing job market. This drives down the cost of labor by making jobs more competitive. Businesses can now afford to pay highly skilled workers less because there are more of them looking for any kind of meaningful work.
