Comment by toomuchtodo

> US corporations ran labor arbitrage by shipping $20/hr jobs to China that was paid ~$0.20/hr and pocketed profits

You have to consider two things in addendum to that:

- Those $0.20/hr jobs come with major financial burdens. Firstly, you now have to organize your supply chain around it as a labor base. That means your logistics are now many orders of magnitude more complex, and more expensive. On top of that, you have additional overhead because you're doing business across international lines, which raises organizational headcount and the kind of bright minds it takes to do that don't come cheap. Quite a lot of money is dumped into making maritime shipping cheap. It's not just subsidies and tax incentives applied to the maintenance and operation of container ships where even the fuel is a tax write-off and heavily subsidized. You need to also consider how much do those ports cost to operate? How much does it cost to maintain shipping lanes? Government attention, influence and dollars are spent at every single step of the way to ensure that foreign labor forces are affordable. A very, very large amount. It becomes apparent when you realize the end to end cost of building a cargo ship, loading it to the brim, and sailing it across the pacific is less than a nice house in Manhattan.

- The disparity in labor cost is also primarily driven by policy which exploits the 'decoupled' nature of local economies driving different costs of living. While this is traditionally framed as only working within the context of underindustrialized people being exploited, you can compare the cost of living in Taiwan with the US, as well as the relative prosperity of the two nations. Large picture, broad spectrum economic comparison is a bad joke because it's simply too lossy to support logical inference, but it's not a mistake that the dollar goes quite far in other places. The inflation of the US dollar was intentionally positioned as the oscillating circuit of the global economy, this way the US would be able to deflate it's currency to prevent bad exchange favorability when needed without suffering long-term economic damage like what happened to Britain in the 1920s.

It's a system of pulleys and levers which were carefully put together to make means to an end. It's not actually cheaper, think about it in a thermodynamic sense. It just looks cheaper because it was structured that way. Costs are hidden by opaque mechanisms that exist in plain sight, all at such a grand scale you can hardly conceive its orchestration. It works because men with a lot of power want it to.

I'm willing to walk before running. Have to start somewhere.