I agree with you on this.
When Walmart is the largest employer in the country, something is seriously wrong. The U.S. didn't become a super power because of discount stores or other service sector jobs. It was because of heavy industry like steel, railroads, auto, and aerospace companies that we became the arsenal of democracy.
A few months ago on television, I saw where a company's stocks lost money because it's quarterly profits were "only" going to be 10% higher than the last quarter. This type of short sighted "quick cash" now thinking is the reason why long term projects and innovation are becoming rarities. The bread and circuses analogy you made doesn't seem to be that far off the mark.