1. The USA is still manufacturing more goods year over year (except 09) even with an economic incompetent at the helm of our country the last four years.
2. The unions and OSHA made it very attractive to spend billions to automate manufacturing jobs. Those items that were not cost effective were shipped to lower cost business climates in taxes, regulations, and labor costs.
3. The unions, OSHA, EPA, and a myriad of other totalitarian regulating alphabet soup agencies forced many industries to move to friendlier climates or go out of business. These businesses were not looking to make money just stay alive.
4. The unions, OSHA, EPA, and a myriad of other totalitarian regulating alphabet soup agencies forces many industries to NEVER consider putting huge capital outlays in the USA. Look to kalifornia for that. Intel will never spend another cent here but will in Texas, Arizona, and even Oregon. Regulation costs stated by the kalifornia government itself adds 35% of COGS.
Lower labor rates and taxes are a small part of why industries leave the USA and blue states. It. Is. The. Regulations.