I agree 99%. Very good points about the free market, the delusions under which some in this country are laboring, and the proper role of Government.
2 quibbles:
1) The "competition" ie Japan, has been working hand in glove with their government for years to protect itself from foreign competitors, and hold the value of the Yen down keeping their prices low. See
http://www.freep.com/article/2008120...ON02/812020330 for a nice summary, as well as some points about the role of investment markets that are in line with the opinions of the original post.
2) Not allowing wal-mart to stock products from China seems to run counter to the whole free-market theme of the post. Perhaps Mr. Knox is endorsing a trade embargo with China on moral grounds, not just telling wal-mart to buy American? That would be more logically consistent, though the practicality is debatable.