You don't understand do you? The way to compete vs China and India is to lower labor costs, not protectionism.
Have you really thought this through? That is like inviting deflation into your home, which can be far worse than inflation. Look at Japan. Depressing wages of first-world nations to match those in third-world nations, where the latter has a ppp advantage, is like putting a giant into a gnome's house. You would basically be asking the entire economy to take a price cut.
No intention of being offensive here but your thought process is a bit simplistic. However, if you can explain how this would work then I am all ears.