Although the "slave labor" happens, It´s not always like that.
I´m mexican and work at an industrial plant and we do quality inspection and handle scrap material for a mexican worldwide company called Nemak. Nemak manufactures around 80% of the motor blocks and cylinder heads in the world and they have 14 plants around the world, 3 of them in the US. Well, they wanted us to provide the service we provide here in their Alabama plant; I went and investigated all related costs, insurance, minimum wages, uniform costs, etc. And we would have to pay 18 USD/hour, to provide exactly the same service we provide here, and here in Mexico we pay around 4USD/hour. And we are the company that gives the highest wages around.
The difference comes down to living costs, a coke cost 0.25, a kilo of avocados 2.9 USD, a lettuce costs 0.25 etc... If I go to work in the USA with the money I make here, I would be considered dirt poor, while here I´m middle class.
Yes, exactly. But the problem is that if we continue to outsource jobs overseas for Corps to save that money that there will be less and less jobs here, which then drives wages down because there is more people willing to do the same job for less money. It costs more money to do things here not only because of taxes and business running costs, insurance, etc, but because people aren't willing to work for $4/hour here because as you said they couldn't afford anything, but if we keep this up home prices will be in the bucket and they will be paying us $4 an hour.
I personally don't want that, I'll buy American when I can and I'll be able to say I did what I could, on top of taxes, etc.