Yes, other countries have knowledge workers too. And...? My point remains: simply being able to manufacture goods is something that everyone can do, cheaply and on a mass scale. Hence, it's unprofitable. The profit lies in things that can't be easily replicated. That's why the service sector is growing so much.
What's your position on the booming population in America? Where do the millions to be added to the country's population fit in with your model? What are they to do for a living? Do you think everyone is capable of being a doctor, lawyer, nurse, CPA (shudder)? Are there going to be enough rich people to provide service jobs for the masses?
You may despise manufacturing and those that do those jobs but they have been the backbone of our economy for generations.