I never thought this discussion would take this path, or did I?

I understand the concept of capital advantage. Example, grapes grow
better in California than Michigan, thus Californian's have an
advantage they could and should exploit in terms of a wine industry-
the same can be said for countries. But industry is not a thing of the
past that is best handled by third-world hopefuls. Industry is the
practical application of science and art. It often begets other
industries as well. You can take any product, such as the radio, and
see where it evolved into something greater (e.g. transistors- high
tech -electronics- computers- the modern communications industry,
etc.). These industry offshoots weren't always done at the behest of
corporations doing honest research in the right directions. Many times
they were stumbled upon or a hobby by someone who had the capacity to
think in terms that might spawn a useful product. I'm don't see how
removing this element from our country is a good thing regardless of
how many cheap products we can buy from someone else. Also, consider
that buying goods is really a trade of capital. Capital comes about by
adding value to items. I do believe physically adding value to
materials is greater than providing added value to the owners of
materials. As an owner I value the object more than service to the
object. For example, if I have to cut back expenses and thus have to
choose between owning a blanket in winter or a dry cleaning service who
will clean my blanket I will choose the blanket and will wash it
myself.

As for the 'we've got doctors, lawyers, plumbers, construction workers,
IBM service techs who can fix your noodle. . ." arguement. First off,
I haven't met a single doctor who's helped anyone live past 150 so the
long term value of their work is negligible to me. Also, if you've
ever been to medical school you'll recognize that there, and other high
tech professional schools, are seeing a sharp rise in non-American
nationals; Indians, Chinese, etc. I'm not sure if this is the service
economy you originally painted but it certainly isn't one which
directly betters nationals. Doctors are necessary and useful, but such
a small percentage have the skills to be one and the proffession is so
competitive these days that of those capable even fewer get accepted
into medical school.

As for lawyers, well, first off there are too many (have a look at your
Yellow Pages if you don't believe me). Second, they've generally
perverted the law in their pursuit to make a living by finding good
areas to make money using the legal system (i.e. malpractice suits,
auto-injury, manufacturing neglegence, etc) and create greater costs to
society (malpractice insurance, absurd hiring practice laws, absurd
industry regulations) than benefits.

I'm a proponent of world trade, but I'm not a proponent of throwing out
the baby with the bathwater. I think our relations with China are just
that. Most experts categorize the flow at least highly imbalanced in
China's favor. While one suggested that active trade staves off wars,
well, the new wars are matters of trade. A strong economy is stronger
than bombs. Who wants to take on a country that makes things they
can't get anywhere else? Did you know that North Korean dictator Kim
Jong iI loves iPods and Jetski's? I say our industry is an army- and
one that slips into a memory every passing day in trade for a quick
buck that most people down the rungs never put in their pockets.