One thing I've been hearing more and more recently is that the U.S. is losing jobs to "cheap foreign labor".
But is that really true? Our family's latest purchase is a nice, albeit expensive, high chair - made with, not cheap, but expensive foreign labor from Norway. It's just a few pieces of wood and metal put together very cleverly to make something usable by a growing child for years:
I rarely see things like this made in the U.S. Why not? It isn't "cheap foreign labor", since the foreign labor involved is expensive - about as expensive as U.S. labor. There's something else at work here - some other reason that the U.S. doesn't do this kind of high margin manufacturing.
Actually, the fact that this high chair could last an entire childhood makes it more likely that we'll buy another for the other child, rather than giving him this one as a hand me down sooner rather than later.
Your point is taken, however. It's likely that manufacturing is simply the wrong place to look for job generation.