Yes, there is a shortage of smart people willing to work for minimum wage. But, paying people livable wages shouldn't effect prices that drastically. I know a few people who know a thing or two about the auto industry. In the early 2000's it would cost GM around $7000 (materials and labor) to build a Tahoe SUV. Those vehicles would then sell for somewhere between $35k and $45k. Those are margins even Steve Jobs couldn't imagine. There are many factors for the US auto industries demise. But, the cost of building cars here was not one of them.