I think you may be right, but I think it will be a repeat of Smoot-Hawley from the 30's.
Our current-account deficit is 100's of billions of $ annually...and has approached a $trillion. If you think THAT's sustainable or desirable, you're the enemy.
I don't, and I'm not. But here's the way I see it. The economy is like a soap bar in a bath. If you squeeze it, you won't contain it; eventually, it will pop out in one direction or another. I think that the net effect of policies that focus on boosting internal pricing of goods and wages is eventually going to be loss of competitiveness and erosion of purchasing power, and I think the purchasing power erosion will come by currency devaluation, not by the number of dollars workers are paid.
We did well in the past because we worked hard, we saved (i.e., built capital that made us more productive), we educated the populace. I think we've been slacking as a nation over the past 15 to 20 years -- overpriced currency, underperforming education, financial engineering in place of product quality, etc. I don't see that administrative fixes and government intervention cure that. It takes an attitude change. Sometimes that comes out of hard times. We'll see.
One positive thing. The fact that you recognize the problems for what they are just raised my spirits. :-)