Right - PG makes the mistake of talking about what labor is actually worth, but this value is dependent on what the political system will allow - the balance of power between labor and capital. Where labor organizing risks torture and death, labor is cheap. Where labor organizing is a protected right, labor is relatively expensive.

This drives offshoring, as capital seeks production regimes where they can reduce the cost not just of wages, but of meeting environmental and safety standards. The naive capitalist then claims that the low ball cost of production in unsafe, toxic, politically repressive locations is the "true" cost of labor. Unions declined in power in the US as the economy moved away from manufacturing, and Reagan set the tone for service unions by firing striking air traffic controllers. By declaring open season on service workers unions, the capital backed Republican right made it clear they weren't going to allow them the same sort of power industrial unions had in the mid 20th c. This political struggle continues today in efforts to raise the minimum wage both nationally and for individual large employers like Walmart and macdonalds.