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Buy America Threatens To Undermine Global Supply Chain

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http://blogs.telegraph.co.uk/finance/jeremywarner/100024969/buy-america-threatens-to-undermine-global-supply-chain/?utm_source=dlvr.it&utm_medium=twitter

One of the more disturbing aspects of America's manufacturing renaissance – which space constraints prevented me from writing about in my column this morning on the widening economic gulf between America and Europe – is the whole Buy America policy.

This blatent piece of protectionism – which has actually been around since the 1930s but was substantially reinforced when the US enacted its post crisis fiscal stimulus in 2009 – basically stipulates that to sell to the US government, or to get government funding for projects, you need to manufacture in the US, and just as important, ensure that the components in your products are at least 50 per cent domestically-sourced, or in some cases even 100 per cent.

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For really big economies, such as the US and China, there is very little downside in such policies, for the effect is to suck manufacturing which had previously been spread around the globe back to the mothership. As a market, America is a world unto itself and certainly too big to be much bothered by the threat of retaliation. The benefits will always outweigh the costs.

Has China been busy off-shoring jobs recently?

Although America may be trying to force companies to keep the tax base functioning for it's own spending plans as it clearly doesn't want it's debt levels or deficits to reach ridiculous astronomical proportions.

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http://blogs.telegraph.co.uk/finance/jeremywarner/100024969/buy-america-threatens-to-undermine-global-supply-chain/?utm_source=dlvr.it&utm_medium=twitter

Has China been busy off-shoring jobs recently?

Although America may be trying to force companies to keep the tax base functioning for it's own spending plans as it clearly doesn't want it's debt levels or deficits to reach ridiculous astronomical proportions.

well done uncle sam.

pity we don't have some politicians with the same gumption...they seem to think everybody is just one big happy family and everything belongs in the public domain, even down to sharing of spouses and underwear.

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well done uncle sam.

pity we don't have some politicians with the same gumption...they seem to think everybody is just one big happy family and everything belongs in the public domain, even down to sharing of spouses and underwear.

I am supportive of this type of marketing campaign. Personally, as Brit I am proud to buy British when I can, but actually I also like to buy American too.

Most products from the UK and US are better quality than from China and Europe (excluding Germany who also have high quality).

I'd rather spend £180-300 on a pair of shoes that I can get re-soled, than some rubbish made in China that last 3 weeks. The most expensive pair of shoes per mile I ever bought came from Shoe Express when I was a student. They cost £30 and the soles wore out in 2 weeks.

The last pair of UK made shoes I bought from Russell and Bromley lasted 5 years, and my new Loakes are on their 2nd soles and still look great.

Watch out for false economy!

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If the benefits always outweigh the costs, it is a good policy for America. Considering in this day and age that the government is about 50% of the economy in Western Nations, it is the dominant player in virtually every area of economic life.

The basic idea is to build a base that an industry can have. Like how Boeing has a base building military aeroplanes, which pays for all of their fixed costs, such as research and development. With this capital base they then can offer products to foreigners without needing to win those contracts for their survival. This creates a stable corporation that can grow over the long run.

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If the benefits always outweigh the costs, it is a good policy for America. Considering in this day and age that the government is about 50% of the economy in Western Nations, it is the dominant player in virtually every area of economic life.

Although if he's citing the end of the 30s / 40s I'm guessing there may have been small reason why the US economy may have profited.

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Although if he's citing the end of the 30s / 40s I'm guessing there may have been small reason why the US economy may have profited.

Ya, although I think people put too much weight on the US exporting after WWII, to explain the world historic economic success of America in those post war years. Exporting was a relatively small percentage of the US economy in the 50's.

I believe the main reason for the success was it was a rare time in history when a nation had both massive production and massive consumption. We see so many countries like a Japan today who are no doubt masters of production, but have wimpy weak consumption. Or the opposite like a Spain with good consumption at least in the boom years, but failing industry.

On a deeper level, a war puts the type of people in power who can just make things happen. In the war years there was simply no doubt that highways, bridges, power plants, steel mills and so forth were going in. No environmental review or public consultations. And a NIMBY lawsuit I do not think is going to stall the project. Even into the 1960's America had that mentality that progress must go on to stop the communist threat.

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  • 245 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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