The walmart/internet death spiral and the war with china

One of the things which allowed China to win the war with the USA was the consolidation of shopping both in big box stores and the internet.  This article does not intend to suggest we stop shopping at walmart or on the internet.  We do not have to revert to hunting and gathering to survive, just the opposite.
The solution is covered in some detail in the book,but it can be reduced to requiring that we create incentives to have local manufacturing of products whether efficient or not (see the Walter Chronkite quote previously for the justification:  i.e. If you hate America with manufacturing, wait till you see the alternative).
So what is the death spiral?  You are in it,  your unemployed neighbor whose house is in foreclosure can explain it to you, the homeless executive with a middle class family can explain it.  You know what it is.  The consolidation of sales, the exporting of manufacturing that accompanies accumulation of products so that their manufacture can be exported (along with most of the cost and the pollution) means that there are fewer local jobs, that our money is exported meaning there is less available capital (eventually we will lose it nearly completely as the dollar collapses if we don't act quickly; brought on by the the foreign banks withdrawing their cash-over a trillion dollars held by China).  Walmart then loses customers, Amazon loses customers and the economy weakens and more people head out to the street to make it as best they can.
You already see the collapse of industries; book stores and movie rentals.  The former is not acceptable even if the loss of movie rental businesses is acceptable.  However, eventually, the country will have to replace franchises with soup lines if this continues.
We need small manufacturing operations and we need small businesses.  The inability to save those, means that we become what Walmart directly or indirectly intends, that we all become nothing more than consumers.  Unfortunately, when that happens, Walmart itself will collapse, like the virus that takes over the body and kills it.  This does not impart evil to Walmart or Amazon, it merely means that our government has to be healed (i.e. we have to vaccinate it against career politicians with term limits and other reforms) and come up with solid solutions, potentially those suggested in the books below.  Even our colleges are in danger of being killed by the technology that they made possible.
Without solutions, we are going to kill ourselves with the virus of progress.  We must be able to save progress and ourselves, we must evolve to live with our cancer.