It is not the labor costs that have skyrocketed. It is the taxes that are being collected and they creeped in and their effect has a ripple inflationary impact where due to the taxation and regulation certain things just do not make sense anymore. I know it is not a popular speech, and I always wondered why nobody wants to talk it.
And i am not talking abou the taxes that are taken from my paycheck directly, which is 43%, in my case (fed, state, city). There are less direct taxes on the property and capital gains, which I also pay.
Now there are true indirect taxes which represent the taxes which you are paying when you get services and goods from others, that are raising the prices of services of the people who are providing them, for they also need to pay taxes on the services provided or value created, or buy services that are mandated and recognized as taxes for they are unavoidable (aka Obamacare). This price inflation has a ripple effect and is further passed through economy.
In my situation (and I do realize that there are individuals who are different), Simple mathematical calculation, Lim f (individual tax rate) = overal taxation burden, shows that, again this is my case, approximately 85% of my income is given back as taxes, which is overall taxation burden. This trend can be repeated for the rest of the economy which is driven and fueled by governmental taxation, waste and spending, and government will never be as efficient as private individual, not even close.
That is the reason why it is cheaper to have to buy something manufactured by robots and bio-robots, rather than pay someone a salary and 80% taxes on top of it.
Have you noticed that in less taxed communities (some erroneously call them less developed societies), where taxation is virtualy non-existent, people do take care of their things and do fix them.