The “Buy American” Movement

12.4.2 Describe the current economy and labor market, including the types of goods and services produced, the

types of skills workers need, the effects of rapid technological change, and the

impact of international competition.

12.4.4 Explain the effects of international mobility of capital and

labor on the U.S. economy.

Meaning and purpose of “Buy American”

• “Buy American” urges Americans to buy products made in America instead of imported goods.

• Proponents of the movement argue that buying domestically is advantageous economically, strategically, and morally.

Economic Argument

• “Buy American”s state that domestic sales boost America’s overall economy.

• If American businesses receive revenues, they will hire more Americans.

• Those new hires will have money to buy more American products, leading businesses to hire more Americans, etc.

• Buying internationally boosts a foreign economy instead of America’s.

Strategic Argument

• Keeping factories and mechanical know-how in the U.S. is important for manufacturing weapons.

• Independence from other countries requires that we can make our own stuff.

• Buying goods from nations that hate the U.S. provides their governments with more funds to combat our interests.

Moral Argument

• Cheap imported goods are cheap because somebody got paid slave wages.

• Or maybe they’re cheap because the company skimped on working conditions.

• Or maybe they’re cheap because the company is destroying the planet.

• If any of these is true, you would be supporting wrong-doing by buying foreign.

Protectionism

• Sometimes a national government will try to enforce a policy of “buy domestic” by imposing tariffs or bans on foreign goods

• Usually, this is done to “protect” a domestic industry from foreign firms against whom it could not compete.

• Although it can be beneficial for the nation doing it, protectionism hurts the world over all and so is frowned upon internationally.

Problems with “Buy American”

• American goods tend to be more expensive. If you “buy American” you end up paying more. Good for the country, bad for the individual, bad for the world.

• Other countries get mad that you’re boycotting them, & retaliate with tariffs.

• If every country only bought domestically, we’d have no trade, and everyone in the entire world would be much poorer.

Summary Question:

• Why do some people believe that we should buy only domestically produced goods?

Reading Articles Assignment

• Summarize the argument and main points of “The Stupidity of Buy American”

• Summarize the argument and main points of “Buy American is smart, not stupid”

• Write a paragraph explaining which one you believe has a stronger argument and why.

• Will you buy American?

Alteration of Victory Condition

• Instead of awarding the top team pizza after 3 weeks, I will award each group its own pizza party when it accumulates 300 points.