The chinese produce cheap inferior crap because that's what the general public is dumb enough to consume.
American companies didn't outsource manufacturing to produce good quality products or pay fair wages.
economic collapse is a certainty. debt based fiat currency monetary systems can never continue indefinitely because they require continuous creation of new debt to service the existing debt. in the absence of economical growth (which is always predicated on increased resource extraction rather than capital alone), this leads to massive inflation which destroys the currency.
your leaders can't fix this - they're corrupt and only exist to enrich themselves and their corporate friends.