The stimulus bill really is the gift that keeps on giving. Andy Roth has a round-up of reaction from around the world in response to the "buy American" provision in the legislation that includes China passing its own "buy China" language, France considering doing the same and India raising tariffs.
Such language isn't just bad because of its negative impact on foreign policy, it's also bad for the American taxpayer. Take for example a bridge. If American steel costs $100/ton while Chinese steel is $80/ton then you save 20 percent by going with the Chinese. By buying American you are paying more money to accomplish the same thing, which means that there is less money left over to be spent on other needs. It's a great way of impoverishing yourself.
Such language isn't just bad because of its negative impact on foreign policy, it's also bad for the American taxpayer. Take for example a bridge. If American steel costs $100/ton while Chinese steel is $80/ton then you save 20 percent by going with the Chinese. By buying American you are paying more money to accomplish the same thing, which means that there is less money left over to be spent on other needs. It's a great way of impoverishing yourself.
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