Forgive me if the parent post mentions this as I only got part way through, but the first few lines caught my attention.
We should NOT reduce the cost of labour, if anything labour costs should be a higher portion of the cost of a product. I realize that foreign workers make this impossible because they will work for cheaper if they are coming from a developing country, but at the same time, developed nations have to realize that their citizens needs to earn enough to afford their lifestyles, otherwise their populace is kept down through depressed salaries. If the cost of living in the USA, which I would term as a person able to afford the basics AND a certain level of opportunity/mobility to achieve more, requires higher labour rates then maybe that is what needs to happen.
Obviously you cannot stop immigration and putting tariffs on everything is not the best solution. Perhaps governments should start penalizing companies that import items assembled by workers not being paid an adequate wage by US standards. Essentially the US saying 'if you as a company want to sell a product to an American you need to treat your employees as American's'. It would promote worker's rights, probably keep jobs in America, and help keep wages at appropriate levels. It would also raise prices of goods, but with that comes better wages, perhaps better spending habits, and perhaps more home grown solutions to manufacture or source goods from inside the US.
You cannot get away from an endless supply of cheaper labour, so instead, implement policies that ensure companies cannot create a 'slave class' by preying on developing economies.