You clearly do not understand the cost structure of goods. In addition, the typical wage for manufacturing in China is in line with Mexico, which is quite a bit lower than in the US but is not the $2 you reference. Plus, there is no 90% tax rate in the products that I am currently negotiating to be produced in China, so I don’t have any idea where you are getting that information.
Yes, in labor intensive products it would be most effected by labor, but once that product gets to be too difficult to ship (weight, size, lack of packing density, etc.) it is quickly no longer a benefit to outsource to cheap labor markets. In addiiton, in high capital low labor products, there is no general benefit to any particular region in the globe, hence you see them localize to the markets that they serve.
The other areas of costs are relatively equalized globally, unless there is some abundance of raw materials or if a government unfairly subsidizes an industry. So, yes a ZERO corporate tax rate and a very large reduction in regulations would go a long way to benefiting Americans by bringing manufacturing of high capital requirements and high skill labor back to the US. I’m OK with the Chinese making my tennis shoes, while we trade in more intellectual persuits and manufacture the next world changing innovation.
The difference between our positions can be explained in a macro way. I prefer supply side economics and you prefer demand side economics.
Well at least we've established that you stand to gain by maintaining the status quo.
"but once that product gets to be too difficult to ship (weight, size, lack of packing density, etc.) it is quickly no longer a benefit to outsource to cheap labor markets."
A quick trip to Walmart, shows that's shipping costs are not prohibitive for most products. This might prevent extremely durable goods like white bread from being produced in China, but not much else.
"I’m OK with the Chinese making my tennis shoes, while we trade in more intellectual persuits and manufacture the next world changing innovation."
You and Obama both. During the debates Obama said he didn't want just any jobs, he only wanted high paying jobs. I'm sure that's a comfort to the 24% unemployed (shadowstats.com) in this country that Obama is going to hold out for only high paying jobs and let them starve and let government deficits soar in the mean time.