There are so many things that the US would have to reform to become more competitive again, but we are so invested into the FIRE economy that it's not unlike the position of the southern states before the Civil War: they were completely invested into the infrastructure of slavery and could not contemplate an alternative economic system because of that. The US is wedded to an economy based on FIRE and Intellectual Property production, with the rest of the economy just in a support role.

I'm not really a pro-organized-labor person, but I think that as a matter of national security we have to figure out a way to reform and compromise to get to the point to which we develop industry even if it is redundant due to globalization. The left needs to compromise on environmental protection, the rich need to compromise on NIMBYism, and the right needs to compromise on labor relations. Unfortunately none of this is on the table even as a point of discussion. Our politics is almost entirely consumed by insane gibberish babbling.

This became very clear when COVID hit and there was no realistic prospect of spinning up significant industrial capacity to make in-demand goods like masks and filters. In the future, hostile countries will challenge and overtake the US in IP production (which is quite nebulous and based on legal control of markets anyway) and in finance as well. The US will be in a very weak negotiating position at that point.