Over time, I think what the US will see is a reversion to what existed in the 19th and early 20th century – the super rich in control of government, and the dirt poor and starving masses scraping by in hunger and ill health. The union movement changed this, but unions either don’t exist for the new economy (i.e. knowledge workers), or are almost irrelevant for physical labor (housing, auto, steel, etc.). I can’t remember when I last heard of a strike or other union activity.
If this happens – then the US will finally be on an even footing with the 3rd world countries in the sense that there will be masses willing to work for nil just to feed themselves – and maybe then, wages for labor will become competitive and local manufacturing will come back.
Another way to fix the problem – though this will not happen (nor should it), is for the US to tax the s%# out of companies that produce overseas cheaply and sell in the US dearly – drive them out of the sales market with tariffs, delays in approvals, unique safety requirements, etc., and let local production fill the demand gap. This is what Japan does – and I pay for it in much higher costs of goods and services. As a consumer, I do not like it. If I were a local producer, I might love it.
This second way is not efficient from a world-wide perspective in the use of resources, but it does keep politicians in office and the rich still get richer – but the poor benefit too in that the overall economy, while not robust, is relatively stable. It requires an industrial policy and the chutzpa to put bureaucrats to good use in protecting an uneven playing field vis other countries.