re: Why are shoes made in America only $20 more expensive than shoes made in Asia?

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Labor costs.

Worlds apart.

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Less and less true over time. The cost of labor expense growth, for example, of Chinese labor has been outpacing the growth cost of US labor for almost 20 years dependent on sector.

Let's say that in 2000, you paid an American worker about a $100 in total labor cost. Today, for the same output, you'd pay $122.50.


Let's also say that in 2000, you paid a Chinese worker $5 for the same output; today you are still only paying about $60 for the same output, but you can see how that relative competitive edge is quickly eroding.

To put it another way-- for most cheap to mid range consumer goods its already cheaper to make the product in Mexico than in China.