>But really, no guarantee the capital doesn't just flee to the other 95% of the world where they can import capital equipment needed to make stuff for much cheaper
To do that though requires security/stability, supporting infrastructure, and favorable trade policy. For many years that meant China, but this is obviously changing. SE Asia still fits the bill but is under the spectre of expansionist CCP and shrinking US influence. Few places in the world now have the combination above as well as minimal worker protections and low wages as the poor interior of the US south and midwest.
To do that though requires security/stability, supporting infrastructure, and favorable trade policy. For many years that meant China, but this is obviously changing. SE Asia still fits the bill but is under the spectre of expansionist CCP and shrinking US influence. Few places in the world now have the combination above as well as minimal worker protections and low wages as the poor interior of the US south and midwest.