, Columnist
‘Buy American’ Policies Don’t Help Americans
A new study details the costs, monetary and otherwise, of laws requiring the federal government to favor domestic firms.
Not necessarily the best policy.
Photographer: Patrick T. Fallon/Bloomberg
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“Buy American” sounds like such a good idea. The phrase itself evokes the benefits of commerce, and of America selling things, while renewed interest in industrial policy from both Republicans and Democrats increases the concept’s political appeal.
When assessing economic ideas, however, the focus should be not on vibes but on data. And a new study from the National Bureau of Economic Research indicates that Buy America provisions are costly and at best only modestly effective in creating jobs.