Obama Abandons 'Buy American' Stimulus Provision

President Barack Obama has changed his mind as to whether the massive stimulus bill that is expected to be approved by Congress today should include one or more strict, "Buy American" provisions in it. Back before the economy crumbled before our very eyes, Obama espoused the ideals of the Buy American philosophy, even using the phrase in promotional materials. Now, however, Obama has backed away from mandating such policies. To the dismay of big labor, as the stimulus bill currently stands, previously included made-in-America restrictions have been dropped. Politico explains:

The current Buy American language in the stimulus bill requires only that the government spends funds in ways that do not violate U.S. trade agreements.

Initially, the House bill restricted spending to American-made iron and steel, while the Senate Version went even further, mandating that "all manufactured goods" in construction projects come from U.S. producers.

But in interviews last week, Obama came out against provisions that "signal protectionism."

Obama's fear, though it is sure to anger labor unions and many on the left, is that Buy American provisions will "backfire" and discourage other nations from doing business with the U.S. at a time when we can't afford to turn away a single foreign customer.

American companies like Caterpillar, whose Illinois plant Obama visited yesterday, are opposed to Buy American restrictions. US Steel, on the other hand, thinks very highly of requiring new construction projects to use, er, US Steel.

The seemingly eternal battle between those who favor Buy American legislation, and those who don't has been around for some time. Sides of this battle are not drawn on the basis of political affiliation, as Pat Buchanan, Ron Paul, Bill Clinton, and now Barack Obama have all shown us. The question, as ever, is whether or not such provisions do more harm or good for the workers in the long run. In our current economic climate, Obama seems to have decided the former.

The AP has more.


It's no surprise that Lou Dobbs is outraged by the president's change of heart on the Buy America matter. Watch:



Dobbs would have us believe that continuing the very same trade policies that we have been practicing these many years is suddenly now putting the very future of the nation in jeopardy. While many may have a legitimate beef with the president on not bringing enough change to the issue of trade, one can hardly accuse him of steering the country in to new and dangerous waters.