The problem with the basic stuff is that we have priced ourselves out of our own labor market. No one in the US is going to work for $1 a day making basic goods, but there are people in southeast asia who will and they'll be happy to get a whole dollar.
Are you suggesting that it is Americans' fault for insisting upon a decent standard of living? Perhaps we should adjust our standard of living to match that of the average Chinese employee working at a Foxconn plant making iPods. I'm sure looking forward to 12 or 15 hour work days, 6 or 7 days per week for $100 a month. That's just enough money to pay for rent at my factory-owned dormitory, and pay for my crappy factory-supplied meals. Oh yes, and since the factory owns the dormitory, I'll be homeless the instant I quit my job, too. And this is APPLE, for crying out loud. Imagine what it's like making crappy little Happy Meal toys.
It's all too easy for us to take advantage of overseas conditions like this. All the dirty details remain hidden from the average Wal-Mart customer. All we care about is getting something cheaper, but nobody really takes notice of why it is cheaper.
In every hierarchy the cream rises until it sours. -- Dr. Laurence J. Peter