Labor Costs

 

The US has a high standard of living and a relatively low cost of living...

Why do you think that is?

Costs of Goods Sold include:

• Labor costs
• Raw materials cost
• Overhead costs
• Taxes

Labor costs are cheaper in the southern US than they are in the northern US.

Labor costs are cheaper outside the US than inside the US

ISSUE:

Right now, our cost of living is lower because we use foreign labor to produce the items we purchase.  If we made those same products at home, we would be paying much more for our items.

EXAMPLE:

California raised the minimum wage to $20/hour which impacted the fast food industry more than anything else, causing many of those companies to shut down and relocate.

What you don't want is for AMERICANS to make stuff because of the wages they demand.

Not only do Americans want higher wages but they want more vacation days and more health benefits than workers from other countries.

Understand this...

We have a lower cost of living because we ship our good in from overseas and NOT BECAUSE we use American labor...

Somewhat of a CATCH 22 is it not???