I agree with you generally, but the issue is really that we (in the US) replaced manufacturing with some combination of the
perception and
externalization of automation. We shipped it all overseas and said "we really don't care how you get it done, but if you can consistently do it at this price, you may as well be an 'automated' black box to us".
If it was fully automated today, we should be able to do it here. Build the same machines. Hell, buy the machines from over there, and set them up here. Then figure out how to pay everyone for the service/idea/artsy work. Whatever they wanna do, at least we can afford the masks when we need them, right? (And the healthcare, and the iPhones, and the whatever else is either absolutely necessary or has supposedly been automated.)
But it's not, so the conversation is really about how we can afford to pay people a living wage in a country with a higher cost of living when they're working as underpriced supplemental labor for not-quite-there automation.
And the reality is that we can't: we externalized that lower wage and we slapped an "automation" sticker on it so that everyone would jump on board. Then we realized that we don't own the automation AND we're eliminating the jobs that automation is replacing instead of retooling the existing jobs to ride the technology curve of said automation as its benefits start to grow.
Again, this is all a very America-centric view, but I think it applies to pockets of Europe as well. And if I was living in certain Asian countries, I think I'd be stoked as hell about the increase in wages that could continue to meet the cost of a rapidly increasing standard of living.
I should also say I'm very much in favor of free trade, and I think that mercantilism/protectionism is net negative for the global welfare of humanity. But I think there was an opportunity that a lot of short-sighted American manufacturing powerhouses missed when they agreed to sign up for the Chinese manufacturing equivalent of SaaS.