As President-elect Barack Obama prepares his economic stimulus package, his advisers are looking into inserting a "Buy American" plank. An Obama spokesperson told Bloomberg that "We are reviewing the buy American proposal and we are committed to a plan that will save or create 3 million jobs, including jobs in manufacturing."
Earlier this week, I wrote about the fallacy of job creation and "job saving." It sounds nice politically but it is, in aggregate, bad policy.
The Bloomberg piece contains a number of quotes from participants that are troubling. Maryland Democrat Chris Van Hollen said that "we obviously want to focus our investments in areas where American industry will benefit." Van Hollen added that the stimulus is aimed at "generating American jobs."
Here's the thing: Taxpayer money should be used for the benefit of the taxpayers, and projects and infrastructure investments should be chosen based on their merit -- with job creation as a side effect.
Taking an enormous amount of money and spending it unnecessarily to create jobs while simultaneously enhancing the waste with a "Buy American" provision is just a bad idea. It would be a bad idea if we had the money and it's even worse because we don't.











Reader Comments (Page 1 of 2)
1-03-2009 @ 7:51PM
Shankar said...
America should withdraw from Iraq and Afganistan. That will save America billions of dollars. The war makes sense unless America is getting Iraqi crude free.
This alone is enough to pull America to stimulate economy and come out of recession
1-03-2009 @ 8:21PM
Anita said...
"Buy American" has been my motto and my mission. I buy as many American made products as I can. I shop for clothes on the internet to find good quality American made clothes, not the junk sold in stores from anywhere but America. If we do not make American jobs a priority, we will not have to worry about an economy. I say this, and I'm no fan of Obama, but if his policies create good American jobs, then I'm for them.
1-03-2009 @ 8:30PM
Gregg said...
Zac, after reading just 2 of your blogs, it clear you are ignorant or just don't like Obama. Only time will tell.
Many years have come and gone. I haven't seen a real commitment to maintaning our infustructure. If we take billions to repair our run down schools, hospitals, libraries, etc... instead of bombing and rebuilding other countries, we can bring this country back to its feet.
At the same time putting people to work,
you kill two birds with one stone.
Remember the phrase "Money for wars but can't feed the poor", its about time that we took care of our own problems instead of spending billions we don't have to go to war without prerequisite.
Funny that you say that we are spending money we don't have......We didn't have the money to go to war to begin with!
I guess it doen't take much of a resume to write for Blogging Stocks.
1-03-2009 @ 9:44PM
Sparkles said...
Buy American, Buy Local.....and support the American small business. Buy non-union only. Keep America Strong!
1-03-2009 @ 10:15PM
dolly said...
Sorry, but I do not believe Obama, even with all the help he has, will come close to making 5 million jobs appear while he is in office. That would take a miracle and he is not capable of making miracles!!!
1-04-2009 @ 10:44AM
Greg said...
I don't know why someone would be down on buying products made by your neighbor instead of buying something made in the Pacific rim, where the workers didn't pay US taxes.Sooner or later, your job is the one to go if we keep importing everything we consume. Sparkles must be either be someone who has never worked for living or loves to work for nothing. If you do work, thank the unions for the 40 hour week, overtime pay and a 5 day work week. When the union is gone, all of these things will change in a heatrbeat
1-04-2009 @ 1:24AM
MinoriBrook said...
What is this guy talkin about? This isn't very different from FDR's New Deal and that worked like a charm.
1-04-2009 @ 1:30AM
laura said...
Buy American, build American, save America...
Over my lifetime our country has given up on ourselves. We have invested in foreign countries through war, by sending our much needed jobs overseas, by accepting poor quality products made elsewhere, and on and on. Basically we have dismantled ourselves. My husband works for a German owned company that has a US division. They may have a presence here in the US, but one key element is that the Germans Headquarters comes first. If the US location needs something manufactured have to buy it from the German mother co even if it costs more than buying it here. This keeps the cash flowing back to the mother co. This is something our own country needs to look at now. Obama's buy american theme is not only a step in the right direction, but essential to gettng our own economy back in order. We need to be independent with energy, and everything else. So do our country a favor and buy American, build American and save America.
1-04-2009 @ 1:49AM
Salsa Shark said...
Perhaps Zac should read up on his history and, in particular, FDR.
1-04-2009 @ 1:52AM
Edward said...
It is nothing wrong to buy products made in America if you want to stimulaye US economy and create jobs in US, the US tax payers' money should stimulate the economy and create jobs in US, not in Mexico. GM closed their plants in Detroit and build new assemble plants , create new jobs and new business in Mexico by buying auto parts locally, and ship the cars back into the US market. So, if you buy cars assembled in Mexico, you only stimulate the economy and create jobs in Mexico. GM forgot that if all their employees in US lost their jobs, who are also consumers of cars, without incomes, who can afford GM's cars assembled in Mexico and sold in the US market.
1-04-2009 @ 3:04AM
chris said...
obama is an idiot who isnt ready for this job at all.
1-04-2009 @ 3:03AM
chris said...
MinoriBrook , the only reason fdr's plan worked was because ww2 came along and gave the economy a boost it desperately needed , without it how long do you think public works projects would have held the American economy up? and another fun fact , the economy didn't rebound to pre-crash levels until 1943, well into the war. so what you people are saying is that we need another world war? or we need a new leader already cuz this guy is in way over his head.
1-04-2009 @ 5:51AM
al coholic said...
Maybe he isn't but I'm willing to give him a chance to try. A case could be made that no candidate for president is ready for the job. Harry Truman, for one, wasn't and he did a pretty good job.
Chris in #9 is correct that FDR's plans did not pull us out of the Depression. But I think I prefer money spent on projects like those of FDR like Interstate bridge repairs or maybe LNG ports.
At least then we could see the things we spent money on and our money wouldn't be going down the rathole it's headed now.
1-04-2009 @ 6:54AM
Giesen said...
Post is spot on. Any make-work projects funded to create jobs are wasteful.
Regarding "buy American"... People should buy the best goods they can regardless of origin.
However, the US is spending beyond its means while other countries are hoarding currency. Ideally, savings rates would even out, which would naturally eliniate any trade deficits, and there would be more global economic prosperity.
1-04-2009 @ 7:48AM
Larry88 said...
Buy Americ: Stop this MADNESS, Until Americans can get a grip on reality nothing is going to change! The Government & the EPA have made it all most impossible to run a manufacturing business in the USA. All this greeny & save the planet crap is what made your jobs leave this country! The first thing before you can open or build anything is file a environmental impact report! The EPA has total control over what can happen in economic development. why because that's what you wanted!!!!!!!!!
Save the planet!! well that pollution is not gone away it's has gotten worse it's just changed it's address from the USA to China a long with your JOBS!!!!!!!!!!!!!
1-04-2009 @ 8:53AM
GIJOE said...
Buy American.....Union or Non-union....do not discriminate.....South or North, East of West.....this is America that we are trying to save isn't it ? All of America....not just Sen Sheby's part..... if it's American and good quality, then buy it.....otherwise American will continue to lose jobs and the taxes for ALL of us will go up because Sen Shebly and the others won't cut Big Government and won't cut taxes for the small guy who has always paid more than the fair share. Buy American......start sending a message that we aren't going to lose the main war.......the economic war that will have us working for foreigners.......the Japanese, the Germans, the Koreans and the Chinese.......Buy American
1-04-2009 @ 9:13AM
Irish said...
Not a good article at all. Your last statement in the article states it's a "bad idea" to invest in jobs and you didn't indicate why. If you're going to pass negative judgment at least give the reason for it.
1-04-2009 @ 9:16AM
Irish said...
Larry - you're statement isn't based on reputable facts. Manufacturing within the U.S. DIED because of the exploitation of poor foreign laborers and tax incentives from our own government. It's a deal to receive HUGE tax incentives to move outside the U.S. and then profit immensely when you're paying anywhere from $ 1.50/hour to $ 5.00/week per employee. THAT is what has killed American manufacturing.
1-04-2009 @ 10:01AM
moonie said...
I hope this posts better get ready Americans i say dig up your yard to plant a garden because by the time Obama finishes off the economy(whats left). Sure buy American it's probably too late. Building new roads and new bridges is stupid sure it will put people to work but how many> GET REAL IT'S WORLD NOW i have to to see it to believe that the big 3 bailouts will help, oh temporarily sure but it's imposible to turn around GM especially by March thats absurd. It will take at least a year to get GM moving and that is even if they begin to reaize its world competition.I predict by Christmas most Americans will buy guns instead of toys, we have been raped by walstreet and DC, building a few roads and bridges isn't the answer, we have to do much more that i also say dig up your yard to plant a garden it;s gona get much worse. duh!Bush will almost be a saint by the time Obama gets done with us, dare to think! for yourself
1-04-2009 @ 11:40AM
Pete said...
I have been buying American as much as possible. There are no stainless steel bolts made in the USA, why, two groups: the EPA and China. If we start building infrastructure, who is going to do the work? Probably Mexicans, because Americans only want to work in offices, not in the field. Harry Truman was not ready for the job, after WW2, he gave away North Korea and North Vietnam to the communists, subsequently causing both of those wars.