What Happened to the Revolution?

There's no question that we've lost good paying jobs to China. Every advanced country in theworld is losing good jobs to developing nations. The French and the Germans lose jobs to Eastern Europe as well as China.
In this country, blue collar guys who once made a good living at the mill are working for Wal-Mart. So where are the bread lines? Why are blue-collar beach resorts like Wildwood, New Jersey mobbed with people on the weekends? Why are restaurant chains doing a booming business?
My theory is that the deflation we now witness in wages has more than been offset by a deflation in the cost of goods, like clothing and food and even automobiles. Wages may be lower for some groups, but so is the overall cost of living. The events that would trigger widespread disatisfaction would be a rise in interest rates-- which would drive up consumer debt and mortages-- accompanied by inflation.