Comments on: Could "Buy American" Rule Spark Trade War?

Some Businesses Fear Clause In Economic Stimulus Package Could Hurt Their Exports

[nilesholinger]

I have seen the update. Leslie, $87,000.00 is not doing too badly in anybody's economy! Considering most of the midwest is getting by on ten bucks an hour, and small towns with any kid of a highway now rely on the fast food industry to help their residents pay the firemen and policemen! We in the midwest went through that cycle with Ronald Reagan's first term - jobs lost, replaced with low pay and part time! As for someone to step up and actually say, "Job 1 is to protect yor market." is refreshing. I marvel and am deeply humbled to know their are at least three cultures in the world more ancient than ours here in the good old USA, but, I do not wish to give my last pair of cotton socks to any of them!

[jd2408]

This has nothing to do with trade. We did not go into debt and borrow all this money to stimulate our economy only to have it spent in other countries and stimulate theirs. Our stimulus package is not a company. My grandkids don't need to be paying back a debt that was used to stimulate another countries economy.

To barbaram99 you are way off line. Products made in the USA, when you can find them, are well made. Its the cheap China junk parts that companies import to use on many items that cause a great deal of the problems. American companies try to compete with foreign imports and that is not easy for them to do. I buy American whenever the product is made here even when there are also foreign products cheaper. If we don't start supporting our country soon we will not have one left .

[walt1944]

Back in the 1980's, I worked for a company that did a lot of contract work for the government as a subcontractor.

I would be in charge of coming up with product costs for government bids sent in for the company to bid on items the government wanted. Buried in the some 50 pages of regulations and specifications was a clause labeled "BUY AMERICAN".

This regulation stated that the bidder certified that ALL material used in the construction of the part was MADE IN THE USA, otherwise, don't bother bidding on the contract!

Even though there was a BUY AMERICAN clause in the contract, the company got around that clause by buying its material from Europe BUT going through a broker with offices in the US; in other words, they claimed the material WAS made in the US because the purchase orders and payments were going to a US address, even though they KNEW the material was manufactured offshore!

In other words, it was a huge scam the company was playing on the government!

The moral of this story is that no matter what someone does to insure that jobs and business comes back to the US, Corporate America will find a way to make its profits and scam the government. I can see a lot of product labels being printed here saying "MADE IN THE US", but being sent to China for the Chinese to put on the products made there!

HAIL OBAMA!!!!

[jeffrey678]

TARIFFS OR TAXES I always find it interesting that those who scream for lower corporate taxes always claim that they are necessary for America to compete in the global economy. Is this not using tax policy to undercut other competing nations. Is the use of a Tariff not the same thing? I know that TARIFFS are the handiwork of Satan , but how is undercutting other nations(ignoring the other aspects of underfunded government and high unemployment) any less inflammatory than slapping a TARIFF on their exports? Economic Populist Blog.

[row555111]

I agree. I have no idea who gave her the assignment to do this on the steel industry. Having a spouse employed in the steel mills everything that DiMiacco said was correct. The reason the steel industry is the way it is because of teh dumping on our market by countries that do not have to toe the line in emmissions and safety items that our American mills have too, so they can produce cheaper. Our steel compainies that have gone under because of the market have been bought by foreign companies that the first thing they do is go in and cut the cost of their workers. If they have to toe the line as in emmissions they just close the plant for a while then go back in and rehire. We are being taken to the cleaners. I trully do believe that we need to put tight and restrictive regulations on any import into our country. Whether it is and american company that has "outsourced" american jobs or foreign companies .

[pjnmickey]

I have the utmost respect for steel workers. My maternal grandfather was a steel worker. But, I have little sympathy for someone who has been making 87k a year and is experiencing a 50% pay cut. Perhaps that is WHY American steel is so expensive. Perhaps these folks should have put a little away instead of living at their means. There are many Americans who would GLADLY change places with them just to have a job.

[1jumanji]

First, Mr. DiMicco has a valid point. There is no free trade, and if anyone wants to view protectionism in action, just take a look at our foreign trade "partners." Mr. DiMicco is correct, there is a trade war against us, and we have not shown up yet. More important to this issue, is the misinformation out there about the "Buy American" clause. This is not for all American trade. It is simply for the use of the Stimulus money being sent out from our government to help our economy. If Caterpillar wants to trade, and build its products in Russia, no one is stopping them. However, I think the CEO of Caterpillar was not being totally upfront during this interview. I wish there were better, far more probing questions asked of him that could have pointed to some dishonesty and misrepresentation on his part.
So, if the money is to stimulate our economy, what is the problem with it being spent here?
I really do not get the difficulty in understanding the reasoning behind Mr. DiMicco's position.
We all know that we cannot argue opinions. However, this is sound economic thinking.
Furthermore, why are people attacking Mr. DiMicco, a leader who is looking our for the American working family, hardworking steelworkers, who work a long, arduous, and difficult hours? He is not looking out for himself. With his intellect and education, he could do anything. No, he is standing by his people, and by the hardworking manufacturing workers of this county.
Finally, what I want to know from all those attacking Mr. DiMicco's economic philosophy is just what is free trade to them? Does it mean subsidizing your country's manufacturing so that it can sell its product all over the world for far less than it is manufactured for, and far less than any other free market member who is not subsidized by its government? This is not free trade, this is cheating, pure and simple. Until people are truly aware of what is going on in the manufacturing world, there will be no truly informed discussion of this crisis. To all who read this, walk a mile in the shoes of an American Industry. Period.

[1jumanji]

First, Mr. DiMicco has a valid point. There is no free trade, and if anyone wants to view protectionism in action, just take a look at our foreign trade "partners." Mr. DiMicco is correct, there is a trade war against us, and we have not shown up yet. More important to this issue, is the misinformation out there about the "Buy American" clause. This is not for all American trade. It is simply for the use of the Stimulus money being sent out from our government to help our economy. If Caterpillar wants to trade, and build its products in Russia, no one is stopping them. However, I think the CEO of Caterpillar was not being totally upfront during this interview. I wish there were better, far more probing questions asked of him that could have pointed to some dishonesty and misrepresentation on his part.
So, if the money is to stimulate our economy, what is the problem with it being spent here?
I really do not get the difficulty in understanding the reasoning behind Mr. DiMicco's position.
We all know that we cannot argue opinions. However, this is sound economic thinking.
Furthermore, why are people attacking Mr. DiMicco, a leader who is looking our for the American working family, hardworking steelworkers, who work a long, arduous, and difficult hours? He is not looking out for himself. With his intellect and education, he could do anything. No, he is standing by his people, and by the hardworking manufacturing workers of this county.
Finally, what I want to know from all those attacking Mr. DiMicco's economic philosophy is just what is free trade to them? Does it mean subsidizing your country's manufacturing so that it can sell its product all over the world for far less than it is manufactured for, and far less than any other free market member who is not subsidized by its government? This is not free trade, this is cheating, pure and simple. Until people are truly aware of what is going on in the manufacturing world, there will be no truly informed discussion of this crisis. To all who read this, walk a mile in the shoes of an American Industry. Period.

[bhz1352]

I would like to address the comments about those who are attacking the steelworker for complaining about a pay cut.

My husband works for Nucor and was also making 80,000+ per year. Two of his last four pay checks after taxes, health insurance, retirement and weekly car payment have been $0.00. The other two have been for just over $100. This has been going on for 5 months now. This, along with my job (where hours have also been cut) plus my second part-time job is not making ends meet. As for savings, yes, we had a savings account, but that was used up quickly. Yes, I thank the Good Lord that he does still have a job, but with 3 children to feed he could be making more sitting safely at home drawing unemployment. But he will not do that. If we can work for our money we will.

Why should he not earn more money than an average worker? He works 12 hour shifts, 4 days on 4 days off, then 4 nights on. He works, he does not sit in an air conditioned office. He gets dirty and he occasionally gets burned. Making steel is a dangerous job and the workers should be compensated for that. Why not attack the basketball player who gets paid millions to dribble a ball up and down the court? Why not attack a movie star or celebrity who makes millions just because of their looks?

As for the comment about them not having a college education, you might be surprised to find that a good deal of the steelworkers at Nucor-IN do have college degrees. Making steel is probably a good deal more complicated than your small minds could comprehend.

[murph0619]

Mr. DiMicco should should stand by his beliefs and quit buying Japanese Electrodes thats what they use in most of thier plants.