Earlier quoted context omitted.
Break even points —just like outsourcing development. At some point it makes sense to offshore and at some point you want to keep some work stateside. It’s about tradeoffs. There is a point where it makes economic sense to send that work to Mexico.
Again, if we are considering the original comment I replied to about medium-term vs long-term, a move offshore to Mexico will always make sense in the long-term unless Mexican labour becomes as expensive as USA. Considering break even points it will always make sense to move out, reasons to not move are the local incentives in the form of tax breaks and invested capital in factories, if the consideration is only abou…
We could kind of have our cake and eat it too if we became more protectionist and also modified the Union-Company relationship to be less contentious. If we prioritized the good of the American worker and society (to the disadvantage of other world economies) Wealth would be less unevenly distributed. Total wealth would decrease and efficiency would be reduced, but very likely we would have a happier American society but also likely a poorer international worker. Of course, this would also require strict immigration weighted more on ability rather than simple willingness to work for cheap.