So let me get this straight, you're comparing pottery to iPods and from that drawing a conclusion?
Hand made goods are almost never cheaper, even in Mexico. A handmade pot would cost more than a machine produced one. It's just that the cheap labor makes the production equipment an unjustifiable investment because the ROI is less. It's less cheaper, but still cheaper. In general of course.
cheap labor makes the production equipment an unjustifiable investment because the ROI is less
I think that's his/her point. The manufactured pot would need to be priced higher (to pay for the production equipment over a reasonable depreciation period) in comparison to the hand produced pot that incurs no such overhead to produce, just cheap labor. So in effect, yes, a manufactured pot would be more than a hand produced pot.
I do think the commenter confused the matter by including imported items in the argument.
Given unlimited future earnings, you are right that a manufactured product may be cheaper to produce since there's much less labor cost, but in all practicality I'm not sure it applies.
Hand made goods are almost never cheaper, even in Mexico. A handmade pot would cost more than a machine produced one. It's just that the cheap labor makes the production equipment an unjustifiable investment because the ROI is less. It's less cheaper, but still cheaper. In general of course.