One sign of economic ignorance is the faith that “Buy American” is the path to prosperity. My former employer, ABC News, did a week’s worth of stories claiming that “buying American” would put Americans back to work. I’m glad I don’t work there anymore.
“Buy American” is a dumb idea. It would not only not create prosperity, it would cost jobs and make us all poorer. David R. Henderson, an economist at the Hoover Institution, explained why.
See, buying American is not just a way to use market forces to keep America a habitable place for workers. It is not a choice to ‘harm’ oneself by paying higher prices in order to ‘help’ your neighbor.
It is just being stupid.
So, we should always buy Chinese if it is cheaper because it frees up more money for people here. And will encourage American companies to lower prices to match. Thus resulting in less money/fewer jobs for American workers, making it harder for them to buy the cheap Chinese products. Great idea. Not!
I imagine he is quite happy about Chinese companies building the new Bay Bridge. Over 3000 Chinese jobs to build an American bridge simply because it was cheaper.
Becoming cheaper is the only way he feels we can compete. If we have to create Foxconn-like conditions, so be it. Hey, he thinks sweatshops are great. What a wonderful world he imagines.
Of course, if American workers become as poor as Chinese workers, who will be able to buy the consumer items needed to drive the economy?
Are we really supposed to listen to this conservative media pundit and hope for an America full of sweat-shops and suicide nets? That sure is a hopeful message for all of us who are stupid for buying American.