But this just isn't true. Labor-intensive products (e.g., health services) are rising in prices, whereas capital-intensive products (e.g., laptops) are falling.
It's true that CEOs may be in danger of pricing their labor out of the market in the same way that (say) textile labor priced itself out of the market, but only time will tell.
Now you're engaging in hyperbole. Let's look at what's happening from the customer perspective, since that's where the money comes from. Realistically, products from Delphi have been less valuable to customers for some time. Personally, I've ripped out the stereo from every American car I've owned because it was so substandard (never had to for a Japanese car, btw). Recently, when the iPod swept the market, Delphi missed an opportunity to add an auxiliary jack (and their mp3 stereo still doesn't have one), whereas auto manufacturers who use other component suppliers do. (As I recall, BMW was first to market on this, quickly followed by Volkswagen et al). Again, Delphi workers can't get guarantees from their customer (Delphi) because Delphi itself can't get guarantees from their customers (what's left of them).
Living near Detroit (and Mrs Cato growing up in Sterling Heights), and with several family members employed by GM, Delphi, and Ford, I'm plenty familiar with the sob story of American auto manufacturing, and frankly my sympathy only goes so far. Union greed, lousy corporate leadership, and government meddling destroyed a great American industry.
No--they might raise wages to get more talent so they can stay competitive.
It's probably true. A poll of French youth was recently taken, where French teenagers were asked what job they wanted most. Something like 78% wanted a job in the civil service, as professional parasites in cushy jobs with little work and less productivity. To me, creative work is a joy, and I proudly live for that kind of work. If that's part of the American ethos, God bless the USA.