Good analysis! Regardless of one's economic philosophy, the fact is that 70 percent of the American economy is supported by the disposable income of ordinary workers. There is no economic recovery without a jobs recovery. You cannot get a jobs recovery when you are outsourcing the industries that support them for cheap labor. The disappearance of jobs means the disappearance of the American market and the disappearance of wealth.
We are now seeing China raise wages to build a consumer base that supports their economy. It was reported today that more cars were sold in China than in the US this year. However, a portion of this economy is still dedicated to trade with failing Western markets that are no longer supported by the disposable income of outsourced jobs. Trade between China and the US has fallen 13 percent. There were layoffs of Chinese workers, because the purchase of imports was reduced. Reliance on weak trade partners puts their jobs at risk. Japan's reliance on trade had been even more catastrophic because its economy was more dependent on trade.
Looking at China and past experience in the US, the lesson is that internal economic development produces more economic growth than foreign trade. China has trade barriers, and the US needs trade barriers to redevelop industries, jobs and the American market.