There's been much controversy over the so-called "Buy American" provision contained within the $787 Billion American Recovery and Reinvestment Act (ARRA) economic stimulus bill that President Barack Obama signed Tuesday.
For the life of me, I don't understand why.
The Administration has set forth the following objectives to be achieved by the ARRA:
- Create or save more than 3.5 million jobs over the next two years;
- Take a big step toward computerizing Americans’ health records, reducing medical errors, and saving billions in health care costs;
- Revive the renewable energy industry and provide the capital over the next three years to eventually double domestic renewable energy capacity;
- Undertake the largest weatherization program in history by modernizing 75 percent of federal building space and more than one million homes;
- Increase college affordability for seven million students by funding the shortfall in Pell Grants, increasing the maximum award level by $500, and providing a new higher education tax cut to nearly four million students;
- As part of the $150 billion investment in new infrastructure, enact the largest increase in funding of our nation’s roads, bridges, and mass transit systems since the creation of the national highway system in the 1950s;
- Provide an $800 Making Work Pay tax credit for 129 million working households, and cut taxes for the families of millions of children through an expansion of the Child Tax Credit;
- Require unprecedented levels of transparency, oversight, and accountability.
It seems that there is at least one provision within the ARRA that is causing some to gnash their teeth. Title VI, Section 604 states in part, "require[s] the Department of Defense to purchase domestically-manufactured textiles and apparel."
This is a PROBLEM?? That American troops wear American made uniforms??
Puh-leese. As we have already reported, American textile manufacturing has been experiencing a resurgence of popularity and profitability. Anybody who's not pathologically narcissistic (at least on economic issues) should be able to understand that using Economic Stimulus funds to assist in bolstering an industry with a proud American heritage will help Americans get and keep JOBS (see ARRA Objective #1). And it won't be in just the textile industry. The textile companies may well need to expand their manufacturing plants; that mean construction jobs. More Made in USA clothing means the domestic shipping industry will get even busier, needing more trucks, at a time when the US Automotive manufacturers are bleeding red. And on and on. Remember, lots of people were gnashing their teeth and predicting the "End of the Economic World" for America in 1993 when then-President Clinton passed his $496 Billion economic stimulus package. What happened? The longest prolonged expansion of the US economy in history, coupled with the most aggressive effort to pay down the national debt. What's not to like?
And it should also be noted that the ARRA is NOT "protectionism." There is nothing in the ARRA that would preclude the DoD or any other agency from procuring goods from overseas as long as it's consistent with current Trade Agreements, and the required goods are not readily available domestically. Further, there's nothing that would prohibit a foreign company from setting up shop here in the US, hiring Americans, and enjoying the benefits of this economic stimulus. The ARRA just will not be giving money to assist profit-mongering corporate executives from shipping American JOBS overseas just so that they can buy themselves a new yacht. No offense to the yachting industry. (Hey, WE would like to buy a yacht someday!)
On that note, if there's any companies out there that are gnashing their teeth at the thought of trying to find domestic manufacturers who can produce uniforms and other textile products at volume, relax; just call Full Moon Rising, Inc at 630-513-8782 and we'll get you set up, American style.
Brian Fallon
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