Labor wage is rarely the dominant cost in modern manufacturing. In semiconductor fabrication, labor contributes pennies to a few dollars per chip. Yet we continue to build trade narratives around wages.

When competition exists, innovation follows. When innovation stagnates, it is often a sign that competition has been suppressed—not that labor costs are too high.

We have structural problems within the US that often are prohibitive to manufacturing products efficiently. Prohibitive to innovation. Most of them come from these so called externalities. Now we face a choice. We can further protect this system that imposes very high costs or we can throw off the shackles.