red states rule
02-04-2009, 09:45 AM
More proof Dems do not have a clue as to what they are doing
'Buy American' clause stirs up controversy
By David J. Lynch, USA TODAY
A contentious debate over a "Buy American" provision in the economic stimulus package poses an early test for President Obama on both domestic politics and foreign policy.
The Senate this week is considering an $885 billion bill designed to help mend the ailing economy, which requires all "manufactured goods" purchased with stimulus money to be made in the United States. The House already has approved a narrower bill mandating the use of domestic iron and steel.
To supporters, including labor unions that helped the Democrats retake the White House last year, a "Buy American" requirement is just common sense at a time of economic crisis and rising unemployment. Factories have been hemorrhaging jobs for years; manufacturing employment is now 12.9 million, down from 17.2 million at the end of 2000. If Congress doesn't insist upon the use of U.S.-made materials, taxpayer funds could line the pockets of European or Chinese workers rather than hard-hit Americans.
"If we're gonna spend many billions of taxpayer dollars in an effort to get the economy up and moving again, it's obvious that money should be spent in our economy," said Jim Robinson, a United Steelworkers (USW) official in Gary, Ind.
Opponents, however, say the new language could breach U.S. trade commitments and ignite a disastrous round of beggar-thy-neighbor retaliation like that which worsened the Great Depression. Both the European Union and Canada already warned the administration against the consequences of resurgent economic nationalism. If other countries enact similar limits, U.S. exporters such as Caterpillar (CAT) and Boeing (BA) would lose lucrative foreign sales.
http://www.usatoday.com/money/economy/trade/2009-02-03-economic-stimulus-buy-american_N.htm
'Buy American' clause stirs up controversy
By David J. Lynch, USA TODAY
A contentious debate over a "Buy American" provision in the economic stimulus package poses an early test for President Obama on both domestic politics and foreign policy.
The Senate this week is considering an $885 billion bill designed to help mend the ailing economy, which requires all "manufactured goods" purchased with stimulus money to be made in the United States. The House already has approved a narrower bill mandating the use of domestic iron and steel.
To supporters, including labor unions that helped the Democrats retake the White House last year, a "Buy American" requirement is just common sense at a time of economic crisis and rising unemployment. Factories have been hemorrhaging jobs for years; manufacturing employment is now 12.9 million, down from 17.2 million at the end of 2000. If Congress doesn't insist upon the use of U.S.-made materials, taxpayer funds could line the pockets of European or Chinese workers rather than hard-hit Americans.
"If we're gonna spend many billions of taxpayer dollars in an effort to get the economy up and moving again, it's obvious that money should be spent in our economy," said Jim Robinson, a United Steelworkers (USW) official in Gary, Ind.
Opponents, however, say the new language could breach U.S. trade commitments and ignite a disastrous round of beggar-thy-neighbor retaliation like that which worsened the Great Depression. Both the European Union and Canada already warned the administration against the consequences of resurgent economic nationalism. If other countries enact similar limits, U.S. exporters such as Caterpillar (CAT) and Boeing (BA) would lose lucrative foreign sales.
http://www.usatoday.com/money/economy/trade/2009-02-03-economic-stimulus-buy-american_N.htm