In the real world there are huge disparities in cost of goods and services too. Somehow this is not taken into account by proponents of free trade. They are talking about competion and level playing field which does not exist in real world.
I cannot speak of India but in Russia they have subsidized housing, subsidized medical health, subsidized agriculture, subsidized public transportation, subsidized utilities like gas, electricity etc. How do you compete with that?
Of course they are happy to make $5hr or $10k per year cause:
- they have free medical care and even if they have to pay a doctor - its 10% of what we pay in US. Mind you they do not have to pay north of $100 for prescription drugs either.
- They do not need to have a car - public transportation is very well developed and almost free
- They do not pay for their houses/appartment
- They pay pennies for utilities
- They do not pay $2 for a loaf of bread. More like $0.2. Same goes for other goods and services. Same china made camera is 50% cheaper over there, cause they know they can get away with charging twice as much in US.
- They do not pay anything even close to what we pay in taxes.
Governments of all countries are actively involved (as they should be) in protecting businesses from unfair foreign competition. Protecting labor force from unfair competition would be a logical next step. Of course it'll never happen, be it republican or democrat.
