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Tuesday, February 17, 2009
Donald Lambro :: Townhall.com Columnist
Protectionist Language Stirs Controversy
by Donald Lambro
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But the trade-protectionist language in the bill, weasel words and all, remains disturbing and dangerous. Forcing U.S. contractors to buy only American steel will make infrastructure projects much more expensive and could, if carried out, still invite trade retaliation from abroad.

"If our goal is to create good-paying jobs at home by selling American-made goods and services overseas -- where 95 percent of the world's consumers live -- then 'Buy American' requirements don't make sense," Chamber president Tom Donohue said earlier this month as debate over the stimulus bill heated up.

"If we refuse to buy foreign-made goods, then our trading partners will refuse to buy from us. And since we are the world's largest exporter, who will be hurt more?" he said.

Heading into last year, made-in-America exports earned a record $1.6 trillion in 2007. Foreign businesses employ more than 5 million Americans here who collectively earn more than $350 billion in wages.

But protectionist sentiment remains strong among many Americans, and it is growing stronger as a result of mounting unemployment and a deepening recession that plays into hands of demagogues who blame lost jobs on trade and the global economy.

This was the mood in 1930 when Congress passed the disastrous Smoot-Hawley tariffs, and other countries responded by shutting down their markets to our exports -- turning a deep recession into the Great Depression.

This Democratic Congress appears poised to make the same mistake -- again.

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About The Author

Donald Lambro is chief political correspondent for The Washington Times.

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Obama's deficit
It is not entirely certain that NAFTA or other "free trade" provisions have superceded Buy American. So, far I do not think that a challenge has been successful -- but sure the WTO or something else may determine that is the case.

Still, I want to stick with it. It worked in good times like the 50s, 60s, 80s and 90s. We need to keep this industry here. Just as it is unwise to make our tanks and planes in China (even though it would be cheaper).

Akagi
Akagi, as for how paying more is a deal for the taxpayer, where does that spent money go? It goes to an American company, which pays an American's wages. And who are our taxpayers? Americans.

When we buy a product from overseas, the consumer may reap an immediate benefit of a cheaper product (and that's assuming it's not poisoned a la China), but it's a one-time shot. The American producer and American worker who was once producing certainly do not benefit.

Instead, once that money goes overseas to pay for the import, that money still represents the same purchasing power, only now it's used towards the payment of foreign workers and production of foreign goods. And if another country's sufficiently strict, it doesn't leave their economy, or at least it doesn't come back to ours.

Protectionism keeps wealth here instead of transferring it to other nations and their citizens. That's the benefit.
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