Why Consumers Pay More for Merchandise Made in the USA
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GUEST POST: TOM BONINE, PRESIDENT OF NATIONAL METAL FABRICATORS
“Buy American!” may sound like an advertising slogan that American manufacturers created to push their products. However, there are many reasons why consumers pay more for merchandise made in the USA that have nothing to do with advertising. A wide range of products, from toys to clothing, are made in the United States, and here are just a few reasons why consumers are willing to pay more for this merchandise.
• Jobs and the economy. The bottom line is that when you buy American, you are either creating or saving American jobs. When production facilities move overseas, so do the jobs. Once these jobs go abroad, it is very unlikely that they will come back. Jobs are the foundation of an economy, and purchasing products that are made in a country has a direct impact on its economy. More manufacturing jobs lowers the unemployment rate and increases the tax base to pay for benefits, such as Social Security. New jobs created in one industry can also lead to new jobs in other businesses. For example, every new auto manufacturing job supports nine additional jobs, from parts manufacturers to restaurant employees.
• Labor standards. Working conditions in some countries are not safe. Some do not have minimum age restrictions and allow young children to work long hours for very little money. The United States has strict labor laws that ensure safe working environments and child labor laws to keep young children out of factories.
• Manufacturing processes. The manufacturing processes in the U.S. are considerably more environmentally friendly than the processes in many foreign countries. It is not uncommon to find foreign products that were made using processes that dangerously pollute the air, soil, and water. The U.S. has a strong commitment to protecting the environment for future generations.
• Fair wages. Many foreign countries do not have minimum wage requirements or have wages that are too low. American workers are guaranteed fair pay for honest work.
• Independence. The decrease in manufacturing in the U.S. has made this country more dependent on outside sources, putting this country at a strategic disadvantage. Purchasing American-made items heightens independence for America.
• Trade deficit. The substantial trade deficit in the U.S. has contributed to increased borrowing from foreign countries at levels that cannot be sustained. Individual citizens may not have felt the effect of this yet, but they will if the debt continues to grow and affects the overall economy. In 2009, for example, the national trade deficit in the U.S. was a factor in the reduction in economic growth from four percent to three percent. Buying items made in the U.S. is one way to reduce this country’s large trade deficit, as well as support the American economy.
• Safety standards. Many foreign countries have extremely low product safety standards. For example, millions of toys are exported to the U.S. every year that contain dangerous levels of lead. When you buy American-made products, you are guaranteed to have items that meet U.S. consumer safety standards and protection laws.
• Political conflict. A number of popular items are produced in countries that do not have favorable relations with the United States. Choosing products made in America frees the U.S. from having to access materials and supplies from these countries.
• Conservation. When the U.S. purchases products made overseas, they must be shipped a considerable distance, typically over either the Pacific or Atlantic Oceans. Shipping these distances uses huge amounts of fuel and releases unnecessary emissions into the environment.
Buying American-made products on a regular basis creates a domino effect. When people purchase American-made items, money stays in the country. This money, in turn, contributes to wages for the people who are indirectly and directly responsible for the creation of these products. And when these people spend their hard-earned money on more American-made products and services, the cycle continues. The more frequently people buy American, the more this stimulates the economy and creates new jobs. Additionally, American workers pay taxes on wages earned in the United States; these monies then fuel programs and services that benefits.
About the author:
Tom Bonine is president of National Metal Fabricators. www.nmfrings.com The Chicago area firm, established in 1944, offers custom stainless steel fabrication, angle rings, welding, and bar milling services.