Which was my question to you. I deliberately left out government to avoid another misdirection. Advertisers want to be paid for their services? Agreed. Two more entities to add to the equation.
How do you propose to fix this?
There are plenty of things that can't be made in third-world countries or emerging economies like China's because the equipment, expertise and materials needed cost too much. A lot of the circuitry used in high-end medical equipment and miniaturized design concepts in general are examples of this. That's why when a big name makes their bestseller overseas, it's in a factory used specifically for that purpose, rather than in one of the many contract manufacturers.
On the other side of the coin, when something can be manufactured overseas, the designer of a particularly popular or profitable item typically has 6 months to recoup their initial investment before those same contract manufacturers start cranking out knock-offs.
Ultimately, there are several things we absolutely positively need to do:
1) Popularize the trades. There's a lot of manufacturing that withers up simply because of a lack of qualified laborers.
2) Fix our broken educational system. There are millions of kids wasting away in public school districts that have essentially been given up on, where literacy rates and graduation rates are beyond pathetic.
3) Encourage community models that are more sustainable and self-contained than anything we've got today. I'm talking about living closer to where you work, where you buy your necessities, and more necessities which are locally produced. The sprawl model we've got in many places is a lot like a fat guy spread out on a couch -- we need to get into better shape.
4) Encourage small business. Big companies have lots of labor, materials and influence, but if we had the same number of people employed by or running their own small businesses, the economy would be so much more stable and self-correcting. The bigger the operation, the slower it is to respond to change.
5) Take money out of politics. Money does not equal speech, and in too many circumstances it equals bribery.
There's more and I could go on at length, but those are just a few of the things that nobody seems to want to talk about -- mainly because the solutions aren't cut-and-dried. They take time, money, and hard work.