> It will never happen. There will always be some lower labor cost region where manufacturing jobs can be sent, and there will always be some loophole which corporations can use to get around restrictions.

It will have to happen. IIRC, the US has trade deficits with pretty much every country it trades with. At some point, those places are going to get tired of trading real goods for IOUs and IP, especially once there are competing providers of IOUs and IP.