The Unintended Consequences of “Buy American”
Good intentions, usual results:
It’s not surprising that Democrats in Congress could not resist adding a “Buy American” provision to the fiscal stimulus bill earlier this year. It might seem sensible (or at least politically useful) to ensure that taxpayer dollars would be used exclusively to support American jobs.
But as states and municipalities start spending stimulus money, the idea is starting to look as counterproductive as it should have looked from the beginning. It is sparking conflict with American allies and, rather than supporting employment at home, the “Buy American” effort could ultimately cost American jobs.
Even the New York Times is not surprised that Democrats in Congress make legislation without much thinking. If it’s politically useful, they just can’t resist it.
(Via Mark J. Perry.)
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