Due to the huge increase in farm efficiency, the average American family spends a far smaller percentage of its income on food than a century ago.
Similarly, due to the huge increase in manufacturing efficiency, the average family spends a far smaller percentage of its income on manufactured items than a century ago. That is one of the reasons why so many American families have two cars, several televisions, a computer etc. etc. And that is one of the reasons why we can afford to spend so much money on services.
Don't tell Willie, but with another half-inch or so advance in artificial intelligence/robotics -- make that a scootch-and-a-half if you're metric -- most of the remaining wrench-turning/machine-tender jobs will be gone for good, Chinese or no Chinese. And the Chinese are going to find out that coolie labor can't outcompete the machines.
It's going to be interesting. Sure, we need to fix the schools and teach everyone to read. But we also need to be moving toward much more flexible work arrangements. Given the chance, more and more people will opt for shorter hours, earlier retirement, etc., but we need to fix Social Security and health care first. Our basic social insurance structure is still rooted in the labor market conceptions of the 1930's.
Thanks to international trade, I can also buy eggplant and zucchini in the off season (although Mexican eggplant still s-cks!).