US "stopped" being a manufacturing powerhouse for the same reason Germany "stopped" being a manufacturing powerhouse, it just moved to less capital intensive, higher margin buisnesses that depend on R&D (like software, finance, etc etc). It's not like the US does not manufacture, it's just that ,because in manufacturing everything is a race to the bottom, having a manufacturing-dominated economy is incompatible with high salaries, unless, of course, you'd also like to artificially rise those salaries through either agressive trans-company collective negotiation or stupid high protections that force profit margins to be even lower. Playing in industries that are not races to the bottom allow for uncapped growths for capital owners while mantaing higher wages for workers without much goverment intervention. This is also why China stopped being number one on manufacturing shitty goods like clothes, they are also trying to switch to a services-heavy economy, just through a more direct intervention rather than pure market forces.