Originally Posted by crucifissio

your example is true in a closed environment...where no international trade exists and where exports are completely insignificant to the economy...most of what you said still stands true in the real world, where exports play a significant role, YES there will be less tax base...but the cheap workers allow you to produce/operate cheap...this in turn allows you to export at competitive prices...

you can not have a cake and eat it at the same time...you can pick only one option...either you keep the cake and you do not eat it....or you eat the cake and you do not keep it...it is impossible to do both...