Big Biz Slams 'Buy American' Stimulus Clause

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Why We Should Require a Buy American Provision in the Stimulus Bill By Joel D. Joseph, Chairman of the Made in the USA Foundation. 9935 S. Santa Monica Blvd., Beverly Hills, CA 90212. JoelDJoseph@gmail.com. (310) 922-1856. The ancient adage “whoever spends the gold makes the rules” applies to the stimulus bill. The United States government has the right, like any consumer, to decide where to spend our money. The Agreement on Government Procurement, signed by President Clinton in 1994, does not override an act of Congress. Further, Europeans and Asians may complain, but their governments are doing the same thing, buying locally-made goods. Finally, it is environmentally sound to purchase steel and other heavy materials nearby, rather than shipping them thousands of miles, polluting the environment in the process. Agreement on Government Procurement The Agreement on Government Procurement was an executive agreement, signed by representatives of European nations, the United States, Canada and Japan. This agreement attempts to require governments to open up taxpayer-funded projects to foreign manufacturers. It is noteworthy that the agreement was not signed by Russia, China, India, Brazil or Mexico. The United States, China, Russia, India and Brazil are the five largest steel producers on the planet. If we don’t buy Chinese, Russian, Indian or Brazilian steel to rebuild our highways and bridges, these nations have no right to object to violations of the Agreement since they are not parties to it. The Agreement on Government Procurement was not approved as a treaty (which requires two-thirds Senate approval) and thus does not have the force of law in the United States. The constitution of the United States provides that treaties are the law of the land. The constitution does not even mention executive agreements. In addition, the agreement allows the U.S. to give 60 days notice that it is opting out. We should give notice immediately that the United States is opting out of the agreement because the agreement does nothing to help commerce in the United States. Other Governments The Economist magazine reported recently that the Swedish government has offered Saab and Volvo as much as $3.5 billion in loans and credit guarantees on the condition that the automakers spend that money in Sweden. Sweden is following the ancient rule that “whoever spends the gold makes the rules.” French President Nicolas Sarkozy wants his country’s carmakers to agree to buy parts from French suppliers in exchange for aid measures, the Financial Times reported. The French government has said it will pump up to 6 billion euros ($7.7 billion) of aid into the battered car industry. In return for the aid, French auto firms must pledge to protect French jobs and scrap executive bonuses. In the United Kingdom, food buyers for government organizations will be encouraged to buy more British produce, Defra Secretary Hilary Benn said. Defra is the British Department...

The notion that protectionism was the cause of the Great Depression is laughible; and totally the result of Right Wing revisionism. Foreign economic entanglement is how a single nation's economic downturn becomes a global catastrophe.

Isolationism leads to a slippery slope... But I still lean towards isolationism, for the time being - Especially when using Federal funds to stimulate OUR economy.