Buy American-How Can We Help?

There’s an interesting article at reporting on the “Buy China” rules that Bejing has imposed on government-funded stimulus projects.  China has instituted the rules, similar to the “Buy American” provisions of our own stimulus package.  It doesn’t take a degree in political science to expect other countries, especially China, to retaliate against US policies that encourage the large-scale purchase of domestic goods.  In fact, both China and the United States already  have “buy domestic” rules in place for all government purchases.

In reality, there are enough loopholes in the American laws to allow the purchase of imports in many, if not most cases.  Given the usual price difference between American-made and Chinese-made goods, it would seem that Washington’s “Buy American” rules have less teeth than Bejing’s policy, especially with the Chinese governments financial support of its domestic manufacturers.

Let’s be honest.  Washington is not the answer to shoring up domestic manufacturing. China, and other countries, may retaliate against any government “Buy American” initiative.  The real answer to the problem lies with you and me. As consumers, we should do our homework and buy domestic products whenever possible.  As business owners, we must offer our customers an American-made option whenever possible.

You may think that domestic products are more expensive to buy, and in many cases you’re correct.  But when you consider the total cost of ownership, American-made merchandise has the edge, more often than not. The $5.00 Chinese widget you buy from Wally World may have a usable life measured in months while its American-made $10.00 counterpart’s life is measured in years.  Our landfills are full of “bargains” that were manufactured in the People’s Republic and other third-world countries.

While government-imposed “Buy American” regulations may prompt retaliation from foreign governments, you and I deciding to buy domestically-produced products, on our own, for the right reasons, isn’t likely to inspire the same response.  Let the market choose higher-quality American-made goods and offshore competitors will be forced to increase their quality in order to compete.  On a level-playing-field our manufacturers will win every time.

Here’s something that bothers me. I’m no expert on international economics, or military materiel, but I’m surprised that no one else seems to be talking about this.  When the Japanese attacked Pearl Harbor, the United States was ill-prepared to fight a world war on two fronts, especially with the massive destruction of our Pacific fleet.  We won the war because we were able to quickly convert domestic manufacturing to build ships, airplanes, tanks, guns, and other necessary military equipment.

While the men went off to fight, Rosie the Riveter stayed at home making the tools to wage war.  It was an American team effort that led to total victory in Japan and Europe.  Hopefully there will never be another World War, but it’s always a possibility.

If such a conflict were to break out, where would we turn for the tools of war?  Would we buy planes from China?  Would we expect Italian-owned Chrysler to convert from auto manufacturing to building military vehicles?  Would Toyota and Nissan be willing to build tanks and humvees in their US plants?  Or would we rely on American factories that make toasters and coffee pots to product the necessary guns and ammunition?

Hopefully there will never be another large-scale military conflict, but with North Korea threatening to fire a nuclear missile aimed at Hawaii, we have to be prepared.

We can’t be paranoid, but it’s definitely something to think about every time you shop for a new car or pick up anything marked “Made in China.”