Your explanation is overly simplistic and juvenile.
It is no less idiotic than when President Obama blamed ATMs for killing jobs in banking.
one only has to look at China to see what happens to every upstart nation....the wages do not remain low enough to justify manufacturing there....so it moves on to the next undeveloped nation. This will continue until there is greater parity across the world.
Quite similar argument, yes.
Productivity gains cannot be impoverishing.
Ignored here is the fact that the machines that now assist in the making of the widgets have to be manufactured with labor content, and the cost of the goods produced goes down, freeing more capital for consumption and investment.
Technological advances are good, not bad. Period.
The guy I work for sells Product Manufactured in China.
It used to be Manufactured in Taiwan, and before that Japan.
Now, Vietnam and Indonesia are undercutting China.
If he bought from US Manufacturers, if there are any left that make what he sells, he wouldn’t be able to sell a thing because his Customers couldn’t afford the Cost He would be out of Business in a matter of weeks.
That is how it is, especially when you sell Products bought with discretionary Income. Heck, Obamacare might just finish him off anyway.
To my surprise I have learned that China has many of the highest tech and low labor manufacturing plants.
Yeah I don’t get that either. So let’s have less stuff, it’s the stuff that’s the real wealth.