Your idea is what is wrong.
We need to bring back industry to America.
Which industries should we bring back and how much extra are you willing to pay to do so? Horse and buggy manufacture? Cheap TVs? Cheap clothes?
Involving government even more deeply is a disaster waiting to happen and decreases efficiency across the board.
The healthy capitalistic economy is characterized by constant change and government policy cannot decide what the economy should look like without enormous costs.
Some of those costs are worth paying such as protecting our defense industries but other political decisions are generally extremely harmful and lower national income.