US switched to socialistic measure ONLY AFTER the recent recession. Many of those measure were quite questionable (not just by me, but many American experts themselves). For years and years US has been purely capitalist - minimum wages is something that was fixed out of a welfare to society attitude - which is present in any kind of an economy.
"If things were run purely along capitalistic lines, there would be no Indians here at all. Travel expenses would negate any savings in labor costs."
You cant be serious about this! The purchasing power parity (PPP) index between US and India stands at 3.5 as of date. No amount of initial expenses can negate the amount of money Indians can make there. This would really mean employees being ready to sponsor their own travel as well if they would get to work in the US.
Fact remains that Americans have become lax and instead of working out their own efficiencies and making themselves competitive, are sitting and waiting for regulatory measures to help them out. Thats the difference between Asians and Americans/Europeans. Asians think whats the most efficient way of going from A to C, but Americans/Europeans say theres no way of going from A to C without doing B - both approaches have their pluses and minuses, but fact remains that Asians currently are the most efficient and hardworking labour-force in the world.