Friday, May 15, 2009

It's Smoot-Hawley All Over Again

Due to the "Buy American" provision of the stimulus mess, pipe fittings at Camp Pendleton were hauled out of the ground-for no other reason than they were purchased from a Canadian company-and promptly replaced with American pipe fittings.

Let's assume these fittings were purchased from the Canadian manufacturer because they were less expensive than the competing American brand.

How is American then advantaged when more expensive fittings are used?

When more money is spent, more money is spent.
It matters not if it is spent in the U.S. or Canada.

We're supposed to believe that because we buy from American companies that jobs are being saved and/or created.
But the company that "bought American" spent more for its American product. So, they are now poorer, and might have to...shed jobs.

Let Free Trade ring!!!

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