There is no such thing as cheap labor.. Cheap labor is only cheap if you're not paying your employees what they deserve. It's an illusion, and one that can only be sustained when you're getting away with paying less than a living wage. If you're doing that, then you're not actually providing value to your customers—you're just taking advantage of them. Labor is a commodity, just like any other. It's subject to the same laws of supply and demand that govern all other commodities.