Because the American consumer is addicted to sales and coupons and won't pay the price that would enable a retailer to make a profit on American made goods, particularly in the clothing category.
Americans have always believed in COMPETITION. Let everyone compete and the consumer will pick the winners and let the losers die off. Most Americans work hard for their money - and they demand VALUE for it when they spend it. This is as it should be... the Customer defines "Quality"
It is unreasonable to expect Americans to artificially support non-competitive industries by paying more for non-competitive products. A higher price from a non-competitive company - doesn't convert to higher quality. Nor does a lower price convert to lower quality.
Exactly why America has lost it's competitive position in manufacturing over the past 60 years - has to do with a great number of factors - no single one of which can be blamed - but the combination of which have had a devastating effect.
Because of automation and improved manufacturing processes through the 20th century, on average the cost of labor in the manufacturing sector is about 11% of the total cost of goods. Government Regulations and Taxes at all levels averages about 18% of the cost of goods.
If anyone here believes that manufacturing has been moved to China for cheap labor - I suggest they do some serious research and quite drinking the political kool-aid. There are very few labor intensive products in todays world.
Most Multi-National Corporations go to China today for several reasons. First - the Total Cost Of Production is far less expensive there. China has cheap power, supplied by the Communist Government via massive hydroelectric power dams and/or massive coal fired power stations. None of which were stopped by an EPA, none of which are owned by private stock holders. Public Utilities in China are still built and owned by "the public" - they aren't there to make money for private stock holders - they are there to support and build China's Industrial Base.
China doesn't have EEOC goals, nor State, County, City taxes. China doesn't have SSI, Medicare nor Workmen'ss Comp. China doesn't have Product Liability law suites either. With cheap energy China can produce high grade steel at less than half the cost of production in the US. While the cost savings of cheap labor - is offset by the additional cost of transportation to our Open and all but Free markets here.
Additionally - all these Multi-National Corporations have moved into China because that is where they see the highest potential for their growth in the future. China's "middle class" is growing...presently estimated by most as 250 million strong - that leaves a Billion potential future consumers to sell goods too.
When I hear people say "cheap labor", I know that they don't really have a clue what our own Government has done to us ever so gradually over the past 60 years. As long as the same Professional Politicians of both Parties keep getting re-elected time after time - don't expect anything to change for the better.
FWIW,
Carl B.
