Don't confuse the program-level dysfunction of what was intended to be the post-Burke era with a lack of industrial capacity. If Congress wants to return to building three LSCs per year, I have no doubt they can.
I think they would, especially with the 3-Burkes-Per-Year plan proposed by the Congress last month.
The Pentagon is particularly worried about the expansion of the PLAN, and they have reasons to do so.
While the USN is retiring more and more ships that are mostly built during the Cold War era, right across the ocean, China is continuously pumping out new warships for the PLAN with capabilities that are closing in, on par, or even surpassing that of their US counterparts. This is not helped by the fact that their destroyer procurement stream was caught in a momentary limbo after having the Zumwalt program cancelled unexpectedly, and that the USN is suddenly forced to return to acquiring the Flight III Arleigh Burkes.
Yet, all those drydocks and facilities that were built for the surge of the Cold War and the 600-ship Navy plan under Reagan's tenure - They are still present today. If the US decides to tear through their pockets once again, I believe they can ramp up their dormant shipbuilding capabilties again to approach or even be on par to the shipbuilding capabilities shown during Reagan's tenure.
Of course, the 600-ship Navy program back then was when the American Dream is still pretty much a thing across American households. The same cannot be said for today, however.
We'll see if the Congress can afford to dedicate 6, 8 or even 10% of the US national budget to the US military and defense contractors at the expense of their people's plight, just like what they did during the Cold War.
Poverty Electronically Scanned Array.
I would suggest to never underestimate the adversary. It's fine to be more confident, but don't turn that confidence into arrogance. The US military is still a very credible and potent adversary for China, even today.
Despite the war game simulations by the Pentagon indicating that the US would always lose to China over Taiwan, the US forces in the Western Pacific could still dish out a powerful punch against China's forces in the region.
And besides, those are reported simulations. I'd bet that the US military is constantly finding and refining their methods and ways to better deal with Chinese military in the Western Pacific. Not forgetting the newer weapons, ships, planes, missiles that would roll out into service as time passes by.
The world is always changing.
If you wish to have such confidence, please wait until the Chinese military can actually look at the US military in the same way like how the US military looked at the Chinese military of the 1980s and 1990s.