That boat had already mostly sailed 30 years ago. We have to go back to the 60s or 70s to change course, and the use of outsourcing created a lot of wealth for the USA, I do think we should have done it differently.
Yes, but that is true of any advancement. In the long run, it just means we should have stopped devoting jobs to low level manufacturing and changed to higher level ones (e.g. software).