Made in America: The short list

[mookiemookie]

Originally Posted by CaptainMattJ.

Why not pay the workers 25 dollars an hour. Then youll have two million people with 25 dollars to spend, instead of one million. Henry Ford had this crazy idea of paying his workforce enough money to buy the products he sold.

Because labor wages are an input to the final cost of your finished good. A company can sell a Chinese shirt made by workers making $1 an hour a heck of a lot cheaper than they can an American made one where they paid workers $10 or $25 an hour, ceteris paribus.

And we Americans have become very accustomed to cheap shirts.