Introduction
Every country in the world desires to promote the purchasing of locally manufactured goods. The United States of America has not been left behind either with several campaigns and legislations promoting the purchasing of locally manufactured goods over imported goods. A 2011 survey reveals that in the 1960’s, only 8% of what is currently consumed in the United States of America was imported but currently more than 60% of what is consumed in America is imported. Since 2008, the American economy has been on a down ward spiral which has been characterized by loss of jobs and closure of some manufacturing industries. It is against this back ground that efforts have been made to promote the consumption of locally purchased products by Americans.
There are divergent views in regard to the consumption of locally manufactured goods. The proponents of consumption of locally manufactured goods advance several valid arguments: The consumption of locally produced goods helps keep the local industries running thus creating several jobs for American citizens. According to the National Association of Manufacturers, around 12 million Americans (who make up 9% of the total work force) are employed in the local manufacturing industries. Locally manufactured industries are also more compliant toward maintaining standards thus providing Americans with quality goods. On the other hand, there are those who argue that purchasing locally manufactured goods could at times be more expensive than imported ones. Given the current financial crisis that is being experienced by most Americans, it makes economic sense to purchase imported brands.
This paper shall therefore critically examine both sides of the argument with a bias towards the argument the purchasing of locally manufactured goods.
Arguments for the supporting the purchasing of locally manufactured goods
For the past 70 years, the United States of America has had laws that promote “Buy America” which give preference to American goods over imported products especially when it comes to government procurement and infrastructure projects. This policy provides one of the best examples as to why it is important to buy American products and materials. The polices and the American laws regarding “Buy America” covers projects that are funded by the American Recovery Act(2009), general government procurement in addition to materials that are used in the construction of roads such as steel, ballast, tar and machinery.
Currently, there is a drastic deterioration of the industries in the USA since most manufacturing companies prefer to outsource their labor in other countries. The outsourcing cuts across major manufacturing industries such as steel plants and computer assembly plants. Apple, one of the largest manufacturers of computers and gadgets outsources for its labor from countries such as China. According to the Labor Bureau of Statistics, there has been a slump in the number of jobs in the United States of America by a whopping 2.1 million jobs since December 2007. The gradual decline in jobs in the manufacturing sector has been getting worse with each passing year. It is reported that as 2010, employment by the manufacturing sector dropped to 11.7 million which marked a 32% decline in the number of jobs available in the manufacturing sector since 2000. As of 2009, approximately 750,000 jobs were being lost each month, a trend that persisted into the start of 2010. If the manufacturing industry is to be rescued from the doldrums, there has to be a renewed interest not only in investing in the local manufacturing companies but also in the consumption of the goods they produce. Buying the locally produced goods would aid in maintaining of jobs .It would also help the government save billions of taxpayer’s money that could be used in the importation of foreign produced goods such as steel. These funds could be channeled to investment in the local industries and by extension, the creation of jobs for American citizens. The positive effect of buying American goods and materials has been documented by the Alliance for American Manufacturing. In one instance, a steel company known as Arcelormittal has largely benefitted from undertaking two rail road projects that necessitated the manufacturing of about 125,000 feet of rail. This prevented massive layoffs of workers in spite the economic down turn that has been experienced in America in recent times.
As a result of the massive loss of jobs since 2008, there has been increase in unproductive i.e. low paying jobs. It is extremely difficult to find a job and given that the majority of those laid off have dependents, they have to find a way to fend for them. The effect of this has spilled over to the economy which now has numerous workers working odd jobs in order to earn little pay. With a hurting economy like the current American economy, the purchasing power goes down; the middle class gradually shrink as more people are barely living above the poverty level. This effect can be reversed by purchasing locally manufactured goods therefore allowing more people to keep their jobs.
In recent times, questions have been asked regarding the labor policies of nations which American companies outsource to for manufacturing services. There have been concerns regarding the treatment of workers in China who manufacture products for major companies such as Nintendo, Apple and Dell. Numerous reports indicate that given the poor human rights track records in these nations, the workers work for long hours with little pay. They may lack insurance at times and in some cases could be underage which therefore makes them a cheap source of labor. The United States of America on the other hand has stringent policies regarding the working conditions and the minimum wages. In purchasing locally manufactured goods, the American citizens would therefore be promoting humane treatment of workers while forcing countries such as China to re-examine their labor policies. Purchasing locally manufactured goods provides an incentive for manufacturers and investors in America to continue treating their workers humanely therefore setting an example for countries with poor labor policies.
Every product that is manufactured in the United States of America has to adhere to certain standards. For food and drugs, the Food and Drug Administration conducts rigorous tests before they permit the sale of either food products or drugs to the general public. Foreign products on the other hand undergo tests but the standards are lower as compared to those that are expected and observed for American manufactured goods. Therefore when one purchases American manufactured goods, they are assured that the goods are of a higher quality.
With the harsh economic times that America has been facing in recent times, most Americans have been forced to re-evaluate the purchases that they make. For most Americans quality and value for money are critical factors to consider. Given the stringent standards that are applied for goods that are manufactured in America, they are at times more costly as compared to the foreign counter parts. At times, they are difficult to find therefore for one to purchase American goods; they have to consider the time and their financial status at the time. This can help in instilling some much needed discipline for impulse shoppers therefore help them in saving the much needed buck. It helps people live within their means and become wiser when it comes to shopping.
Arguments against buying American goods/products
While there are numerous valid reasons as to why individuals ought to purchase goods manufactured goods, there are opposing views that have been advanced. Agriculture is one of the branches of the American economy that enjoys huge surpluses each year. The wide spread campaign to purchase local products means that the label “ local” over rides any other factors that the buyers ought to consider prior to making a purchase. For instance, rarely do Americans question the environmental friendliness of the food products they are buying. The vegetables that are bought because they are local may have been produced in a green house which contributes to the emission of green house gases. There are indications that some of the fertilizers that are used in the cultivation of food products have contraindications such as accumulation in the body. American farmers are therefore getting away with unsafe practices under the “Buy America” initiative while the consumers continue to aid this unaware.
There are several developing countries in Africa and Asia which heavily rely the exportation of goods in order to fund their economies. With the promotion of the purchasing of goods made in USA, there might be a decrease in the exports that are consumed locally leading to a decrease in the imports from the developing countries. This could have devastating effects for the citizens of the developed countries since many of those who rely on the manufacturing industries might lose their jobs therefore leading to staggering of the economy of the nation. This means that the vicious cycle in which the developing countries rely on the developed countries for aid continues with the developing countries accruing little benefits from this arrangement.
Purchasing goods that are manufactured in America hurts those who are poor hence cannot afford to purchase American brands that are often more expensive as compared to foreign imports. By promoting the sale of imports from foreign countries alongside American goods, healthy competition is fostered therefore forcing the local manufacturers therefore come up with more innovative products. Promotion of the purchasing of locally produced goods could come in the way of this competition. This is because the products made in the USA will receive prominence over foreign promotes unfair competition. In the case of agriculture, locally produced goods may not always be the best given that the climate in most parts of USA does not favor the natural growth of food products. As a result of this, there are several food products that are grown in green houses which offer an artificial environment for cultivation. The end product may not necessarily be of the best quality while the foreign product may be better given that it was grown in the natural optimal conditions. Focusing on buying locally produced goods therefore denies the consumer the opportunity of choosing the product that he/she deems is of better quality.
Conclusion
In light of the arguments presented above, I support the purchasing of locally manufactured goods. This is because of the sad state of the American economy which can be reversed if Americans buy products that are manufactured locally therefore keeping the industries running and securing the jobs of millions of Americans. The possibilities that the revival of the American manufacturing industry present are immense and therefore cannot be ignored. It is therefore imperative that each state takes the initiative of supporting industries located within its boundaries so that the culminating effect would be felt nationwide.
Works Cited
Abate, G. "Local Food Economies: Driving Forces, Challenges, and Future prospects." Journal of Hunger & Environmental Nutrition Vol.3 (2008): 384-399.
Alliance for American Manufacturing. Buy America Works: Longstanding United States policy enhances the job creating effect of government spending. Annual report. Washington DC: Alliance for American Manufacturing, 2010.
Martinez, Steve, et al. "Local Food Systems; Concepts, Impacts, and Issues." Economic research report. 2010.
McCormack, Richard. Manufacturing: A better future for America. Washington DC: n.p, 2010.
Prestowitz, Clyde. The Betrayal of American Prosperity. New York: Free Press, 2009.
Smith, Shauna. "Keeping the Money in America." Mountain State Manufacturing 3 May 2011: 12.
