I agree, but you fail to mention the immigration issue. Workers come here and send a large chunk of the money back to their home countries economy, sucking it out of ours. China at least invests a considerable sum back in our economy and continues to buy our debt (which is an entirely different issue).
The immigration issue wasn't directly relevant to the direction the thread was taking. I do take issue with immigrants sending our nation's money back home. The fact that Mexico's second largest source of income after oil is Western Union really chaps my backside. China buying our debt is not a good thing, that just gives them good position when it comes time to foreclose. America should be in debt to its people, not foreign nations. That way, should the nation become insolvent, it will be returned to us and not over to China.
A trade deficit means that a country is consuming more than it is producing. Consuming more than you produce is pleasant thing.
It's a pleasant thing for countries like China. Our GDP stands to get worse as our country fails to produce. It also hurts when we no longer have the incentive to improve technology. Technological revolutions are what have driven our GDP up as high as it is. Families are wealthier because we have improved technology. We have grown from being poor farmers because of investment in technology. If we outsource all manufacturing, then why would it be necessary to invest in R&D as long as their is an endless supply of cheap labor.
If the breadmaker can produce 10 loaves of bread a day and sells them for $1 each, he would have $10 a day for his effort. If he invests in technology and produces 100 loaves a day as a result, then he will surely enjoy a better standard of living. However, if children in Bangladesh are making bread for $0.10 a loaf, the breadmaker will descend into poverty. This same principle happened to those who worked in the auto industry. Try selling your argument to them. You are replaceable as well. Let's see if you remain convinced after someone with an H1B Visa replaces you.