Economic Patriotism

by Brad Peck

Chris Braddock and the Washington Post editorial board have covered why the "Buy American" provisions in the stimulus package are a bad idea, here is Tom Donohue's most recent statement on the topic:

Some have slammed the U.S. Chamber for opposing ‘Buy American’ provisions, calling our position ‘economic treason.’ Try economic patriotism. Such provisions would cost American jobs, trigger retaliation from our trading partners, slow economic recovery by delaying shovel-ready infrastructure projects, and cede our leadership role as a longstanding proponent of free and fair trade and global engagement. If our goal is to create good-paying jobs at home by selling American-made goods and services overseas—where 95% of the world’s consumers live—then ‘Buy American’ requirements don’t make sense. If we refuse to buy foreign-made goods, then our trading partners will refuse to buy from us. And since we are the world’s largest exporter, who will be hurt more?

‘Buy American’ casts our trading partners as enemies, which is absurd. Foreign firms employ over five million Americans at good wages, for a total payroll of more than $350 billion. Folks outside the Beltway understand this. In fact, state governors compete intensely to attract the next Toyota or Siemens facility. It’s easy to demagogue opposition to such a pleasing sounding thing as ‘Buy American.’ But it’s time to face the reality about the real-world consequences of these provisions for American workers, businesses, and our nation’s global standing. And let’s take note of history. In 1930, when Congress approved the Smoot-Hawley tariffs, other countries responded by closing their markets. The upshot was a collapse in U.S. trade that turned a sharp recession into the Great Depression.

Those who don’t know history are doomed to repeat it. Let’s not make the same mistakes again, especially now.

For more, see our multi-industry letter to Congress.

Update - Some more reading on the topic:

• Protectionism is False Protection
• "Buy American" and the Not Science of Lou Dobbs
• Reading List - 2 Feb 2009
• No Time For a Trade War
• Morning News - "Buy American" and National Interests
• "Buy American" and Stimulus

Comments

[Jeff Paul Internet Business]

I am running a small internet marketing business as my side business. This has helped me cut time when I’m free from my busy schedule. I really get satisfaction when I am my own boss.

[jeffV]

i just cant beleave what i just keep hearing they wont give up america put this kind of work for us not to let other countrys do it for us

then you asses keep saying it would be a mistake to take our work back what do you want the american flag or f7543 chinas flag here in THE USA we the american people come first not last

[smilin' jack]

The U.S. Chamber or Commerce is nothing but a club supported by your (our) contributions. Like the ACLU, it should be DISBANNED or OUTSOURCED. No more support from me.

[robert makowski]

u commies should move to china and eat the lead paint the put on our kids toys.you elitist bastards only care about your money to be made by selling out america. there is no such thing as fair trade when it comes to the us selling inother countries. only to other countries selling in us.what planet do you live on. you should move to china and call yourselves the china chamber of commerce .you could get ajob at a chinese slave labor camp and suck fen swang.you do not represent any american worker.you couldnt wipe the ass of any american worker you claim to represent. you dont like america LEAVE!!!!!GET A REAL JOB U COMMIE U NEED TO SEE ME U CAN CALL ME AT 724 825 7233 ILL GIVE U DIRECTIONS TO MY HOUSE AND ILL SHOW U WHAT AMERICA IS ALL ABOUT YOU BUNCH OF AMERICAN BASHING COMMIES

[Dobbs]

People could have just posted the Lou Dobbs transcript rather than plagiarize it. In any case, calling something "Buy American" is just marketing... People, think about it. It sounds great, but a) just what is "American"? - a car that's called a Toyota but 80% made in the U.S.? - and who decides?... and b) why on earth would we want to start a trade war? - even if we're the number 2 exporter and not number one, it's a hell of a lot of jobs to lose when a trade war starts... For all the talk about how evil "big biz" is, we're finding out the reality that when "big biz" hurts, we all do... sticking it to the large companies that export billions upon billions of dollars in goods and services, and employ millions of people may make you feel better from an ideological perspective, but any person with an ounce of economic knowledge will tell you it will be very, very ugly to American jobs and the American economy.

[Chris]

Please change your name to Chamber of horrors!

[Joan Simpson]

US chamber of commerce only by your standards. I am saying what you are doing is disgraceful. Because of your garbage I am getting to collect unemployment for the first time in many years Many of my friends are also being lay-off. You call yourselves Americans, I call you thieves. You have stolen our jobs and gave them slave laborers in the name of price savings. You bring foreign workers to cut our wages. One day the real future that you are for is going to come out and bite you. When it does , May the the good Lord have mercy on your souls, and may your families be spared.
Take off US from your title. There is not a thing you are doing for The US worker. Your are a sad disappointment to all Americans.
Joan

[Ray Woodworth]

The US Chamber of Commerce no longer has the American workers intrest at heart, you need to remove US from your name.

[Brenda Witherspoon]

Please drop the US off the Chamber of Commerce name as you have dropped the US citizens. We pay the wages you don't deserve, while you support every country but us. You talk of the ungrateful workers here. What workers in what country? Not here. Almost every family I know has a friend or relative unemployed. You say spend, spend what? You have to have a job, earn money in order to spend. I don't think you even live on the same planet as ours. How much are we paying you?
Brenda Witherspoon

[vito Florimonte]

The US Chamber of Commerce should drop the US from its logo/name since they do not represent the majority of the US citizens re the buy american provisions of the stimulus bill being shaped by the senate currently and soon to be returned to the house. There is no way this stimulus package can be successful without a Buy American" stipulation and the efforts by the "Chamber" to put a different spin on this is just plain barnyard BS.
I believe that the "Chamber" is just a high powered lobby group representing the interests of foreign clients at the expense of the American citizens. This stimulus bill price tag will be paid for by our children and grandchildren for many years to come and the benfits of the bill should accrue to American Businesses. The Foreign Governments are welcome to float their own stimulus package for their citizens. vito Florimonte, Vienna,Va.

[A struggling AMERICAN MANUFACTURER IN GA]

Oh and by the way, to all you companies importing containers of product from China and calling us when your container does not come in. GO TO HELL! Call China when the goods are substandard and they won't let you return them, oh I forgot, YOU CAN'T SPEAK CHINESE.

THANKS TO BILL CLINTON FOR SIGNING NAFTA AND THANKS TO GEORGE BUSH FOR MAKING IT WORK FOR CHINA

[A struggling AMERICAN MANUFACTURER IN GA]

To the NON-USA Chamber of Commerce. There are no more jobs left in the USA. The only company hiring is the government. Maybe everyone in the USA should go to DC and apply for a job. Get your heads out of your asses and look at whats happening around you. The US needs jobs and for us Manufacturers to hire, WE NEED ORDERS, of which we have NONE due to CHINA. WE CANNOT COMPETE WITH CHINA! Listen to us before its too late. Call me if you need further explanation.

MANUFACTURER IN GA FOR 20 YEARS LOOSING GROUND FAST!

[ChamberPost]

David - Peter was engaging in satire - BP

[David Nealy]

As a member in good standing of the chamber I never cease to be amazed at how greedy and ungrateful the American worker is.
We are gifting way too many of our valuable resources (jobs) to the American workers who are not appreciative. It will be a good lesson for them and a good thing for our economy when unemployment among Americans finally reaches 25% (or higher). Our good neighbors to the south, the gentle people of India, and the Chineese people, on the other hand, are grateful to make a couple of bucks per hour. And they do a good job. These are the most efficient workers and the ones all the jobs should go to.
I used to come home at noon to spank my kids. Now I have my own business and have to interrupt my golf game twice a week to come back to the shop at noon and yell at my American employees in order to keep them in line. Thank God they will be outsourced next month and I will be done with them.

We can only hope that as a good standing member of the chamber you leave with them to mexico or china.As for your buisness I am just amazed your stupid enough to bite the hand that feeds you.Yeah those same lazy Americans your talking about.You know the ones not good enough to work for ya but there a ok enough to be customers.Anyway I will let ya get back to exploiting your workers.As for the Chamber pot of commerce we can only hope they will drop the US part of there name.Or at least change it to something like china or mexico.

[petergozinza]

As a member in good standing of the chamber I never cease to be amazed at how greedy and ungrateful the American worker is.
We are gifting way too many of our valuable resources (jobs) to the American workers who are not appreciative. It will be a good lesson for them and a good thing for our economy when unemployment among Americans finally reaches 25% (or higher). Our good neighbors to the south, the gentle people of India, and the Chineese people, on the other hand, are grateful to make a couple of bucks per hour. And they do a good job. These are the most efficient workers and the ones all the jobs should go to.
I used to come home at noon to spank my kids. Now I have my own business and have to interrupt my golf game twice a week to come back to the shop at noon and yell at my American employees in order to keep them in line. Thank God they will be outsourced next month and I will be done with them.

[Buck]

The "US" chamber can go to hell. The point is taking care of ourselves with our own money. Not spend the hard-earned taxpayer dollars in China, India, Mexico, Canada, or wherever else. Why don't you start thinking about whom you are supposed to be representing instead of pretending to be the "US" chamber. All of your supporting companies can go to hell as well.

[Matt]

A trade war is the best thing that could happen to this country! It would be hell at first but eventually local and small business would pick up the slack of the big multinationals that would leave. There would be a ton of competition because of all the new start ups and best yet a ton of jobs. Dollars earned here would stay here. Bring on the war!

[Mike]

Truley a shameful way to say you are for the U.S. economy. Why not just ask for everyone here in the U.S. to move to Communist China. Then the Chamber of commerce can support everyone! Maybe we should see who supports this group and boycott those business's.

[Lisa from Southern MD]

Let me tell you something. The US Chamber of Commerce needs to stop sleeping with these companies who have sold out Americans for other countries' cheap labor. Maybe if we would stop selling our souls that these other countries woudl actually pay their own people a decent wage. I guess you havent had your child poisoned by lead from toys made in China so you cant possibly get it through your thick heads. We need to bring industry back to America and the likes of you will disappear because you are no longer king kool-but king crap. You are the worse kind of blood sucking scums.

[T. JOHNSON]

I am outraged, I already lost one job to NAFTA program. The lobbyist groups are not the american people. So are the american people really the ones your looking out for? The U.S Chamber of Commerce should be changed to International Chamber of Commerce.

[paul harris]

So long U.S. Chamber...I will NEVER support you again, in any way, shape or fashion.I'm a small biz type, but your true colors are now showing. You don't represent me and are foolish to take this position. Rot in Hell!

[Dave O]

I think the Chamber of Commerce is suffering from the same syndrome as our corporate and political leaders. I'm amazed at how the article above mentions concern for American jobs. Where were they when many of our middle class jobs were lost in the interest of cheap goods from foreign countries like China. There is no arguement with what is happening today. A large majority have reeled in their spending... it's not likely to improve until they begin to believe that their own job is no longer at risk. The real way to fix this mess is to treat our trading partners with the same set of rules that they apply to us. In addition we need to start buying American products again. Our economy cannot survive by continously sending hundreds of billions of dollars overseas every year. No stimulus package will fix our economic problems without fixing our trade policies and buying habits first!!!

[Claudia McElwee]

Drop the U.S. in U.S. Chamber of Commerce unless you are going to be behind U.S. companies and American workers. You are doing a disservice to the United States!!

[joe coreno]

you people are morons! What country are you from or for? the Buy American provisions does not effect the global market. you people should be ashamed of yourselves.

[Mrs Tom Wright]

I suggest the Chamber and its supporters be outsourced to India, China or Mexico so they can be close to the people they represent. And you title 'Economic Patriotism' is laughable. Where is the provision in the Stimulus Bill that prohibits any work going to H1B Visa holders? The medical records overall President Obama wants would put thousands of unemployed American IT technology workers back to work...if the playing field was fair. Currently their are more Indian's working in technology companies offices then Americans. And that doesn't include all the jobs the companies outsourced. Why should Americans foot the bill to Citi, BOA etc when the people staying employed are foreign nationals? Why don't the rich businessmen of India give their countymen jobs ....oh sorry...our government seems to want to be political correct and support foreigners over their own citizens!

[Mrs Tom Wright]

I suggest that the Chamber be OUTSOURCED to Mexico or India or China.....because that is who they represent. And your titlt Economic Patriotism is laughable!
Where is the provision in the Stimulus Bill that prohibits any work going to H1B Visa holders? The medical records overall President Obama wants would put thousands of unemployed American IT technology workers back to work...if the playing field was fair. Currently their are more Indian's working in technology companies offices then Americans. And that doesn't include all the jobs the companies outsourced. Why should Americans foot the bill to Citi, BOA etc when the people staying employed are foreign nationals? Why don't the rich businessmen of India give their countymen jobs ....oh sorry...our government seems to want to be political correct and support foreigners over their own citizens!

Outsourced by Fiserv

[jack]

I believe U.S. should be taken out of your name.
What about the EU and their protectionism, or China? Or are you a supporter of communism.
This so called stimulus package SHOULD be limited to buy american.
I used to support some of your ventures but never again.

[spanky]

Go ahead, chamber of commerce, keep advocating and spending your members' dues lobbying congress to fight "buy American" provisions in the current so-called stimulus legislation.
I want to sit back and watch nature take its course:
By the time obama's so-called stimulus bill will be in effect, Americans will have lost millions more jobs, and our hard-earned tax dollars will be going to the red chineese to buy concrete and steel, the engineering contracts will all go to indians, and we will bring in ignorant peasants from mexico to do all the labor. Well stimulate this---
Your lobbying will bring on a revolution(thank you finally). Look at england and spain. The english middle class steel workers are just coming off a successful general strike to kick foreign workers out of their country and get their jobs back. In spain, when unemployment reached 13%, the spanish kicked out their illegal alien grape pickers and took back those jobs themselves.
Keep it up, chamber of commerce, and you will wake up a sleeping giant and the American Middle Class Revolution will start.
The only question is who will fire the first shot and how and when will it happen?

[Donna]

As written by another American. I second his View.

You have posted an untruth when you state, the United States is the single largest exporter of goods in the world. Not so. China has gained the number one position due in part to American companies and the policies known as outsourcing. Mexico follows closely behind China if you consider the exportation of HUMAN BEINGS for the purpose of cheap labor which it seems the US Chamber of Commerce stands in support of. Then the HB1 Visa program comes into play, which by the way the US Chamber also supports giving away another 150K high paying tech jobs to foreign nationals for a lesser wage. I agree with the majority of the above posters when they call for dropping the "US" from your firm's title. Further, I suggest the government remove your tax exempt status and from there, you can go pound sand...
You have turned your back on the American worker for the last time.

[Maggie Cook]

I am so disgusted with the "US" Chamber of Commerce !!! What a joke !!! If they manage to abolish the e-verify system they are without a doubt the worst defenders of the American taxpayer ! Perhaps they need to have their positions replaced with illegal immigrants.....I really don't know what this country is coming to. God help us all with the Chamber representing us. We're screwed.
Maggie

[Jim Easling]

Take the US out of the US Chamber along with take American out of the ACLU.

[R M Hartman]

The stance of the "U.S. Chamber of Commerce" on this issue is misguided. The drive to "Buy American" in the context of the Stimulus package is to keep facctories located in the United States of America running. In my study of history, I have not found that these types of requirements have caused any "backlash" from foreign governments, in fact, some have this type of regulation in place.
The "U.S. Chamber of Commerce", in my opinion, is no longer working for the betterment of companies with factories and plants located inside the United States of America.

[Rita Kershaw]

It is amazing that the Chamber of Commerce cannot see or wants to see a country in total disarray, while protectionism is not precisely a the best way, There should be some distinctions as to what should be allowed.
Take for example the garment industry. They are mostly overseas, they make a garment for pennies, turn around and sell them at the same prize as if they were manufactured in the US.
They make insane amount of profits under that rule. Why can we have those companies make their goods in the US.? Perhaps at a lesser profit, is that such a novel idea?
Why have most of the customer service reps outsourced? some of them as we all know cannot even speak English correctly, those are low paying jobs, they would be practically minimum wage in the US, why does Microsoft wants to hire more engineers from India? Don't we have engineers in the US. I buy Nissan, there are many Nissan plants in the US. Lets not penalize the foreign countries that have the courtesy of producing goods in the US. Lets just bring some semblance of equality in this economic world.

[Rip Davis]

I spent years in Chamber leadership roles but now, reluctantly, have to agree with the vast majority of Americans that the dozen or so National Chamber leaders have taken a noticeable anti-American stance in recent years.

We can only assume that the Bush Monarchy, H1B lobbying by self-absorbed people like Bill Gates, and large donations from anti-American groups like NCLR (LaRaza - that lobbies to throw open our borders), have succeeded in bringing about this change in philosophy from supporting American Business’ to supporting whomever gives the National Chamber leadership the most money.

If you now are more interested in Foreign Business interests, Please drop the US from your title.

[John]

The US should be taken out of your Name, you are not for the people of this Great Nation, and its Bushes's policies and before that has got us in this mess to begin with. The same with E-Verify which is a voluntary system and it works to keep illegals taking american jobs when they should not be here in the first place, Illegal is Illegal! Just as Made in America is Made in America and that's who we should be buying from, supporting our own great Nation!

Thanks for Nothing!
John

[Charlie in NJ]

Free and Fair Trade? We run huge trade deficits, does that mean our products are no good to overseas markets - or that we negotiate really bad trade agreements? The US is the #1 market in the world, our trading 'partners' should pay for the priviledge. At the very least, our trade agreements should have the same restrictions of imported goods as our 'partners' have in theirs.

And in agreement with other posts: As the US Chamber you should support the US, since you don’t please drop the “US” from your name and replace it with "Foreign".

[BOB]

.CHAMBER OF COMMERCE SHOULD BE ASHAMED BUY AMERICAN CLAUSE SHOULD NOT EVEN BE THOUGHT THESE ECONOMIC TIMES DEPEND ON EVERYDAY WORKING AMERICANS THATS WHAT HAS BUILT THIS COUNTRY. MAYBE IF OR NO WHEN WE START EXPORTING GOODS THAN IMPORTING THEM FROM CHINA ETC.. THAN WE WILL BE ABLE TO GET OUT OF THIS QUESTION IS WHAY COUNTRY DO LIVE IN ANYWAY .LETS CHANGE THE LAWS FOR OUR PEOPLE AND THE AMERICAN WORKER AFTER ALL WE ELECTED OUR OUR REPS TO WORK FOR US NOT FOR THE HIGHEST BIDDER. THANK YOU BOB KENDALL

[Daniel R. Golinski]

Buy American because our economy needs all the help it can get. Even Canada insists on a content law for its manufactured goods. Besides, our economy needs all the help it can get.

Thank you,
DR Golinski

[Bryan D Ballew Sr]

You have posted an untruth when you state, the United States is the single largest exporter of goods in the world. Not so. China has gained the number one position due in part to American companies and the policies known as outsourcing. Mexico follows closely behind China if you consider the exportation of HUMAN BEINGS for the purpose of cheap labor which it seems the US Chamber of Commerce stands in support of. Then the HB1 Visa program comes into play, which by the way the US Chamber also supports giving away another 150K high paying tech jobs to foreign nationals for a lesser wage. I agree with the majority of the above posters when they call for dropping the "US" from your firm's title. Further, I suggest the government remove your tax exempt status and from there, you can go pound sand...
You have turned your back on the American worker for the last time.
Respectfully,
Bryan

[david nealy]

David - You can analyze the study and say why it is wrong, link below, but you didn't actually answer the question. You can't claim fear mongering and then go straight to jingoism.

I dont need analyze the study for what could happen if we do this or that regarding trade.What I can analyze is the US loseing 71,000 jobs in one day just recently.Im sorry I dont support your position on this.

[Larry Belcher]

WAKE UP AMERICA! Demand the President, federal and state legislators, and governors establish "Buy American-Hire American" provisions in all government expenditures. Demand they reverse incentives to outsource jobs to other countries by heavily taxing (seems this is the only language they understand) such actions on 'parent corporations and companies'. They are making decisions based on greed and convenience of the moment. We can do without most things they are shoving down our throats to choke the life out of our childrens' and grandchildrens' future. Stop buying non-American made products now and the sacrifice will be worth it. If boycott was ever needed, it is needed now. Demand 'Country of Origin' labeling for all things. I challenge you to contact your representatives everyday for the next 30 days at least and make it clear that if they do not support "Buy American-Hire American", they are history. This is too important to allow business as usual.

[Ryan Schrader]

To call yourself US Chamber of Commerce is an insult to the American people!! Why don't you change your name to the CHINEESE CHAMBER OF COMMERCE? You are not supporting the United States or the people in it, the people that, unfortunately, support you financially. The reason we are in the mess we are in is because of you and those out of touch, paid off politicians we have let fester together in Washington!! Between them and people like you, our jobs have been sold around the world, to the lowest bidder!!
I hope you are happy, the wonderful United States of America is going to hell in a handbasket (probably made in China).

[Barbara Anderson]

You should NOT BE US agency. This agency MUST remove US from its name. Nobody in this agency should be paid with the US tax payer money.

[J.K.Mair]

Sir,
You are not looking out for the best intrests of the U.S.workers. Charity begings at home. Then you can afford to help others. Who is helping American workers. It sure is NOT the US Chamber of Commerce.

J.K.mair

[S. A. Mitchell]

First it was the NAFTA program, and now it is Buy American, both of these programs the people of the USA sounded off agance them, saying WE DO NOT WANT them, But you went on ahead with what YOU wanted to do anyway!!

SO I agree with the TV news CNN.

Remove "US" from your name as YOU are NOT speaking for USA any more!!

[M & L Copenhaver]

I think it is a crime for you to be against Buy American First. We have helped every nation just about and they still treat us like scum. It is time to put our people first. We need the jobs. NAFTA is unfair . No level playing field. We probably could compete if
it were.
I respectfully ask you to remove US from US
Chamber of Commerce and replace it with World Wide Chamber Thank you

[Robert Wood]

Keep "Buy American"! This is a key to what has happen to our economy in the last 20 plus years. Build back factories in the United States that have moved out of the U.S. Make the products here! We should not have to depend on any other country for anything(energy, etc.) Put a stop to people from other countries buying and gaining control of our factories. Bring back jobs to the United States that have been lost to other countries.

[Dave Walley]

Maybe the U.S. Chamber of Commerce should move to Mexico where you might be more appreciated,and we can be rid of your anti-American ideals.

[John S.]

You idiots at the U ASS Chamber of Commerce should pack your bags and move to one of those countries whose products you worship. Try China! That bastion of freedom and liberty! You don't appreciate your own country where you exist but have some "World Economy" state of mind where labor is dirt cheap and safety and enviormental regulations don't exist!
You should all burn in Hell!

[Daveo]

" Folks outside the Beltway understand this."
Fu*k 0ff!!!1 Folks everywhere understand that US-based companies partnering with Asian and other companies benefit from slave labor - even if the owners of said companies don't realize it. We don't need to be #1. Get used to it.