I think the problem is deeper than that. We used to have a large industrial manufacturing base that supported the middle class. Those jobs are now a thing of the past as "free trade" has decimated the American middle class. Basically, our standard of living has declined, and the rest of the world's has increased. We are now, predominantly, a service economy.
And?
Last time I checked, factory workers were never considered middle class--my family sure wasn't, when my mother assembled microwave ovens. Look around you. I assume that you're middle class yourself. Do you see fewer middle-class people around you? Have any of your peers slipped down the class ladder to a point where they'll be there permanently?
Our standard of living is still much higher than most of the rest of the world.
Additionally, even if we have a business climate that is amenable to innovation and change, do not believe for a second that as soon as the next big thing designed in the U.S. can be outsourced to India it won't be. The resulting impact on the "educated" American worker is their typical career now lasts 10 years, and it requires constant life long learning and re-education just to stay at the same standard of living. Vauxhall does not approve...
I honestly don't know about that. My job hasn't been outsourced (yet), and I think that lifelong learning is a good thing, for the most part--as long as your employer is helping you pay for it. 9 years ago I went back to school to get a degree that would further my career (as my first two degrees were worthless in that regard), and even though my employer offers tuition assistance, I haven't taken advantage of it (yet)--nor have I had to. I dunno.
The resulting "benefit" of all this is you can buy a $79 DVD player from Walmart. Yeppie!
Are you really saying that that's not a benefit?!?