But what will be the result? The product now has equal cost to be produced, but the market is gone.
People consume cheap stuff because it is cheap. If it is no longer cheap, they will not consume.
US americans just need to make up their minds. Do they want keep getting more and more and more cheap stuff? Fine. Then go on exploiting other regions of the planet. Or do you have enough cheap stuff now? Ok, then nobody needs another factory.
Many on HN are living in a society where it is normal to use a TELEPHONE for only two years before throwing it away.
What would happen if you instead used it for 5 years? No more factories needed. Problem solved. You don't have to compete, as there is no competition.
The result of charging the true cost of T-Shirt to the consumer is not that everybody now has 100 Fair-Traded-Ecofriendly T-Shirts at home that they don't wear. They will notice that 10 T-Shirts are more than enough if you wash your clothes once per week.
What I am trying to say is: The demand is only there due to the option of exploitation. Take away the part of ruining other peoples lives to get cheap stuff, then it's no longer interesting and will just stop.
So of course you can take the detour, try to re-industrialize, and then find out that your people do not actually like this kind of work, and that they for sure also aren't willing to buy your stuff at the price you are asking.
There is a reason nobody would be so stupid to produce "Make America Great Again" merch in America. Your target audience would not buy it if it was made in America.
It is pragmatic to simply skip this step and end up with the same result: You'll just consume less.
No, why would you say that? When America and Europe built their wealth, they were mainly (though not exclusively) producing and selling manufactured goods for themselves. This whole idea of a poor country developing by building polluting factories to make items for rich countries is a more recent and different thing.
Europe and America insisting on certain labor and environmental standards as a condition of trade wouldn't mean poor countries can't build factories for themselves. At worst, you just split the current one big market into two smaller markets: an expensive and clean one, and a dirty and cheap one.
Do we let other countries wage war, pillage, etc. because others gathered wealth that way previously?