Peter Zeihan gives some great background context to things:
One criticism I would make is that he oversimplifies the issue of our manufacturing base and economy. We focus on high value stuff, yes, but not just really, really high value, like designing microprocessors and space stations. We also manufacture an enormous amount of high-value goods. We shipped production of low value, low margin manufacturing like shoes, clothes, toys, various ordinary consumer products, and so forth, primarily overseas. BUT, the United States has nonetheless remained one of the top manufacturing nations in the world. Until 2010, we were
the largest manufacturing nation in the world, but China has since surpassed us. Currently, China accounts for 28.7% of global manufacturing, while the United States accounts for 16.8%, the second largest.
A lot of people seem to think we only manufacture cars and trucks, jumbo jets, and various high-tech military stuff like tanks, nuclear submarines, aircraft carriers, fighter jets, and so forth, but that otherwise, everything else is made in China and our economy is just service-based. After all, every product you look at in any store you go into is made elsewhere it seems.
But the reality is that we are a manufacturing powerhouse, we just manufacture tons of stuff that most people don't know exists, all sorts of advanced industrial and infrastructure components and machines. For example, the machine shop I work in produces a lot of components for gear production machines (as in you know, mechanical gears, which themselves go into all manner of things). Well gears require specialized machinery to make them, and those have special components. They also make components for forklifts, medical equipment, pump components, and for awhile ice cream machines. These are all things that undergird our society and economy but not things you will find in any Wal-Mart or Target store.