Another entry in the "no, unsupportably high wages are not the problem with American manufacturing" line of argument, from Jared Bernstein, who points both to the the relatively low manufacturing compensation costs in the United States relative to other advanced economies and to the much slower increase in manufacturing compensation costs in the U.S. than elsewhere over the past decade. Bernstein writes:
Now, compensation costs aren’t the whole story, especially with manufacturing becoming more capital intensive, but at least by these measures, which of course account for exchange rate movements (essential when we’re discussing price competitiveness), there’s not much support at all for an argument that overpaid manufacturing workers are the source of our competitive disadvantage.
I’d argue it has a lot more to do with the lack of a coherent manufacturing policy, wherein public and private representatives strategize on the best ways to boost the sector and gain global market share. Of course, this means retiring the canard that “we don’t pick winners.” Our competitors are well ahead of us in these endeavors and this is not the time for ideological sloganeering.
Workers are not to blame. Things will not be better if working people are poorer or don't have the medical care they need. It's time to stop the race to the bottom.