GenSeneca
Well-Known Member
You've all seen the bumper stickers:
Save US jobs, BUY AMERICAN!
At first glance such slogans have appeal, it's patriotic to support US products and it helps the US economy... Or does it?
Let's apply some "honesty in advertising" to that slogan:
Lower your standard of living, BUY AMERICAN!
How do you feel about that slogan now? Suddenly it's not so appealing.
Here's just one example from my real life situation: I buy plain white T-Shirts for both of my part time jobs and, because I'm in foodservice, they don't last long, so I buy a couple dozen every year. I usually buy them from a bin in Walgreens where they are 4 for $10 and they come from a myriad of countries like Jordan, Philippines, China, etc. If I were to spend that $10 on a T-shirt made in the USA, like this plain white T-Shirt from American Apparel, I'd get less than half of ONE shirt - MSRP $22
Because I have access to cheap foreign goods, my standard of living is higher than it would otherwise be. To purchase 4 US made shirts would cost me $88 vs. the $10 it costs me to buy the foreign made shirts, that's a savings of $78.
But is my purchase helping the US economy? Yes!
What people often do not consider when complaining about cheap foreign goods is the opportunity costs of purchasing the more expensive American goods. The substantial savings from my choosing to purchase cheaper shirts leaves me with money to spend on other goods and services, raising my overall standard of living.
But am I supporting US jobs? Yes!
As I said, I purchase these shirts from the Walgreens right down the street, right here in the US, my purchase helps support that company and it's employees. The "extra" money I save can also be spent in other stores or restaurants, money that I wouldn't be able to spend if I purchase American made shirts.
Conclusion:
Buying higher cost American goods rather than their cheaper foreign counterparts actually puts a drag on the economy and lowers your standard of living. Free Markets are good for everyone.
Save US jobs, BUY AMERICAN!
At first glance such slogans have appeal, it's patriotic to support US products and it helps the US economy... Or does it?
Let's apply some "honesty in advertising" to that slogan:
Lower your standard of living, BUY AMERICAN!
How do you feel about that slogan now? Suddenly it's not so appealing.
Here's just one example from my real life situation: I buy plain white T-Shirts for both of my part time jobs and, because I'm in foodservice, they don't last long, so I buy a couple dozen every year. I usually buy them from a bin in Walgreens where they are 4 for $10 and they come from a myriad of countries like Jordan, Philippines, China, etc. If I were to spend that $10 on a T-shirt made in the USA, like this plain white T-Shirt from American Apparel, I'd get less than half of ONE shirt - MSRP $22
Because I have access to cheap foreign goods, my standard of living is higher than it would otherwise be. To purchase 4 US made shirts would cost me $88 vs. the $10 it costs me to buy the foreign made shirts, that's a savings of $78.
But is my purchase helping the US economy? Yes!
What people often do not consider when complaining about cheap foreign goods is the opportunity costs of purchasing the more expensive American goods. The substantial savings from my choosing to purchase cheaper shirts leaves me with money to spend on other goods and services, raising my overall standard of living.
But am I supporting US jobs? Yes!
As I said, I purchase these shirts from the Walgreens right down the street, right here in the US, my purchase helps support that company and it's employees. The "extra" money I save can also be spent in other stores or restaurants, money that I wouldn't be able to spend if I purchase American made shirts.
Conclusion:
Buying higher cost American goods rather than their cheaper foreign counterparts actually puts a drag on the economy and lowers your standard of living. Free Markets are good for everyone.