Yes, both the soviet union and american out-produced and outmanned the Germans. China will soon out produce and out man america.
You are focusing too much on the outcome of that war, and you are ignoring the "positive aspects of free trade and cheap labor" which the germans enjoyed.
You are overlooking the fact that the germans in ww2 produced many goods with a very cheap labor source thru their slave camps, and in economic theory, was better off than either america or the soviet union in the long run. The germans actually produced many goods from their slave labor campes at a far cheaper price than the americans could produce them by using american workers in american factories.