Wages are a cost of manufacturing just like any number of other "ingredients". US labor is overpriced with respect to the rest of the world; it could work when we built largely within the country, but we were always going to lose when globalism became the game. If it costs you $10 to manufacture something that is done elsewhere for $4, you are going to lose. The AFL/CIO caused the wage inflation - higher labor cost without matching productivity - that's basically the definition of inflation. The government aided and abetted unions by not applying antitrust regulation to unions, and then threw fuel on the fire by increasing minimum wages. One of my economics profs actually used the term "ratification" for bumping minimum wages to somewhat follow union wage increases. We basically "wage inflated" ourselves into a non competitive manufacturer.