'Buy America' clause announced in stumulus package

[plasgears]

It's only natural to consider that a stimulus package will emphasize 'Buy America.' Or is that too logical. Anybody objecting to that should be examined carefully for motivations. We are not here for the benefit of China or other questionable sources.

 

[TheTick]

Anybody objecting to that should be examined carefully for motivations.

[!]I object![/!] Is sanity a motivation? Perhaps history? Rationality?

http://www.investorsinsight.com/blo...-and-the-specter-of-technical-insolvency.aspx

Nothing could be more devastating to the hopes of a recovery. Nothing could more surely turn a recession into a depression, and a global one at that.

 

[KENAT]

I don't normally put links to the pub but I think a lot of the regulars in this forum frequent said establishmnt so: thread1088-236440

In principle it doesn't sound unreasonable to me that an American bill with the express purpose of stimulating the American Economy should enclude provisions to make sure most of that money is spent in America.

It's not an across the board tax on all imports or similar.

That said, I can see how some people might view it as the start of a slippery slope.

Perhaps if instead of phrasing it the way they did, they'd said something like "Any money spent on foreign item purchases shall be subject to 100% off-set of purchases of US items by said foreign entity" it wouldn't have caused the heart burn. Many (most?) countries require these types of provisions when buying US defence equipment.

KENAT,

Have you reminded yourself of faq731-376 recently, or taken a look at posting policies:

http://eng-tips.com/market.cfm?

 

[Unotec]

By 'we' I take it you're american (as in North American, US, between Canada and Mexico). The same that decided to move their own manufacturing to China and other lower labour cost countries thus creating an economy dependent on lower cost products? Just think how bad things will get internally when all of a sudden everything starts getting much more expensive and scarce. When the supply lines are suddenly cut. And there will not be ebough labour, therefore driving costs even futher up.
The world has move into an international economy with many interactions of the various countries.
Are you going to buy american oil now? At a preferred price? Are you going to shut borders to countries that have your economy by the 'bills'?
To truly start changing and fixing the economy think of what the U.S. exports (only way to introduce money to the country). Part of it, big part, is financials and weapons. They might need to be regulated. In particular banks.
Many things have to change, and I am not qualified to analyse all (or any for that matter) but do some research on what the economists say (from all over the world) if you're interested. Just keep in mind what history has taught us: The government will take any wrong decision they can think of until the only one left is the right one.

<<A good friend will bail you out of jail, but a true friend
will be sitting beside you saying ” Damn that was fun!” - Unknown>>

 

[GregLocock]

Well look at how successful the /decades/ of protection given to the American Steelmaking industry have been.



Cheers

Greg Locock

SIGlease see FAQ731-376 for tips on how to make the best use of Eng-Tips.

 

[MintJulep]

"Buy America" provisions have been around for a long time on projects funded by Federal money. This is nothing new.

Buy America is meticulously easy to meet. I'm not going to look up the actual requirements at the moment, but essentially something can be 40% foreign content with 51% of final assembly completed in the US and meet "Buy America".

 

[msquared48]

I'm tired of buying Chinese mops, the only ones available, that only last a week. This is ludicrous.

Mike McCann
MMC Engineering

 

[civilperson]

Define "American supplier". Would Nucor,RIMM, General Motors, Toyota, or IBM qualify? Most large corporations have significant foreign exposure in both manufacturing and sales as well as foreign ownership. This jingoistic bit of unthought patriotism is REALLY STUPID. Refer to the statement, " Patriotism is the last refuge of scoundrels".

 

[IRstuff]

The clause, as written in the House bill only addresses US steel.

TTFN

FAQ731-376

 

[civilperson]

Is Nucor Steel American or Japanese?

 

[IRstuff]

http://moneycentral.msn.com/companyreport?Symbol=US:NUE

http://www.nucor.com/indexinner.aspx?finpage=divs&iwhichone=0

American

TTFN

FAQ731-376

 

[civilperson]

Nucor Yamato has plant in Blytheville, Arkansas with joint ownership with Yamato Steel. Duferdofin Nucor produces beams in Italy as Nucor Europe. Are products from either location "American".

 

[swall]

My company faced price increases when the steel tariffs were put in during the start of the Bush administration. What happened was that the tariffs applied to all steel products, even those that were no longer produced by U.S. mills. Fortunately, those tariffs have expired. Along the lines of what MintJulep wrote, we have to use U.S made steel for parts we supply for DOD programs. That has been a longstanding policy. But, I am not in favor of adding new restrictions on steel sourcing.

 

[BigInch]

Fine. You can start with buying American oil.

**********************
"Pumping accounts for 20% of the world’s energy used by electric motors and 25-50% of the total electrical energy usage in certain industrial facilities."-DOE statistic (Note: Make that 99% for pipeline companies)

http://virtualpipeline.spaces.live.com/

 

[Unotec]

And hoping american oil will be sold at a discount to americans and not at international prices, where the oil companies could make more money.

<<A good friend will bail you out of jail, but a true friend
will be sitting beside you saying ” Damn that was fun!” - Unknown>>

 

[ewh]

We need a flying pig icon...

"Good to know you got shoes to wear when you find the floor." - [small]Robert Hunter[/small]

 

[BigInch]

Hope? If oil prices go up, just create a depression, spend a lot of trillions and follow it by inflation. Or precede it by inflation.

Get it?

Oil prices can't even hold their own against milk and chicken soup. Buy chicken soup and orange juice futures. They're better bets in the long run.

**********************
"Pumping accounts for 20% of the world’s energy used by electric motors and 25-50% of the total electrical energy usage in certain industrial facilities."-DOE statistic (Note: Make that 99% for pipeline companies)

http://virtualpipeline.spaces.live.com/

 

[plasgears]

The main point in 'Buy America' is to support lcoal industry, thus perpetuating industry and jobs here, where they belong. I take no pleasure in my children buying foreign make cars, when they have the option to buy good American brands.

[My company was destroyed by sourcing engineering plastics from China.]

Even smart people are being blinded into doing business with China. Cessna Aircraft is sourcing their new Light Sport Aircraft fom China! what the hell were they thinking?

 

[KENAT]

So one point I heard an economist or similar make on NPR...

One of the biggest concerns is that other countries would retaliate - which is generally perceived as a bad thing that would diminish trade.

However, what if they 'retaliated' by creating their own 'stimulus packages' with 'buy <insert country here> clauses.

Would that really be so bad?

KENAT,

Have you reminded yourself of faq731-376 recently, or taken a look at posting policies:

http://eng-tips.com/market.cfm?

 

[Unotec]

plasgears, this is what they were thinking $$$$$$$$$$$$

<<A good friend will bail you out of jail, but a true friend
will be sitting beside you saying ” Damn that was fun!” - Unknown>>