“When we buy goods made abroad, we get the goods and the foreigner gets the money. When we buy goods made at home, we get both the goods and the money.” – Abraham Lincoln
For more than a decade, the Savvy Shopper feature has emphasized that shopping is about more than price. For example, value may include shopping more efficiently, in less time, or in a way that helps society. When looking for value, one way to address the last point is to try to buy American-made products. As important as America is to most, the idea of supporting our industry still has a way of being overlooked. And with all the hurdles to buying domestically, I can see why.
From sketchy information about a product’s origin to simple lack of availability, I can attest that it’s not always easy. Among the many reasons for the massive wave of imports, I believe one of the main causes is that we have been overloaded with misinformation. On the other hand, many have internalized the idea that the origin of a product does not matter. In fact, the confusion has grown to the point where some even argue that buying American is a bad idea*! Although the ability to distinguish foreign from domestic products is essential and will be addressed at a future date, it is also important to understand why local team support is important:
∙ Economic future: For the past 40 years, we have had consistently high trade deficits. Last year, we ran a deficit of $860 billion and have accumulated a foreign debt of over $9 trillion. At some point, the bills will come and it won’t be pretty. We may as well not make things worse, and a great step in this direction is to reduce import consumption.
∙ Economic sustainability: As an engine of prosperity, manufacturing is in a class of its own. Every $1 of manufactured goods produced results in an additional $1.43 of activity in other economic sectors. This is twice as high as what the service sector generates. Due to higher productivity, industry can also pay higher average wages than other economic activities. Furthermore, 2/3 of all research and development that drives critical innovation for a nation is supported by industry. As an additional point, if we could eliminate the trade deficit, it is estimated that 10 million new jobs would be created.
∙ American Values: Some say nothing is more American than getting the best product for the best price, no matter where it’s made. Such a sentiment would have been news to our founding fathers. When George Washington was inaugurated as president, he insisted that his clothing be American, despite the fact that foreign clothing was cheaper. Along with our greatest president, all the people on Mount Rushmore were ardent supporters of American industry. Instead of opting for lower-priced imports, these statesmen adhered to the principle that strengthening our country simply replaced price. And with such ideas, the US became the preeminent economic power. After all, buying American is time-honored in principle and in practice. Isn’t it amazing how our economic structure began to unravel when we began to lose this?
∙ What is American?: As a final point, there are some who claim that globalization has rendered the term “American” meaningless. While examples such as a Toyota Tundra being assembled in Texas and a Buick Enclava in China are offered, it is argued that it is no longer possible to identify or purchase a purely domestic item. Talk about the trap of an all or nothing mentality! Throughout history, it is a rare product whose ingredients are sourced from only one nation. For example, the tires on a Model T are made with Asian rubber, but most people have enough sense to consider this an American icon. While there may be few 100% domestically sourced offerings, the fact remains that there are plenty of products that are mostly that.
While there is nothing inherently wrong with foreign products, buying them when domestic alternatives are available carries a greater cost than many realize. Just saying! Having covered some key reasons to support the home team, specific ways to do so will be covered at a later date. In the meantime, I encourage you to visit our Facebook page (Log in to Facebook and type “Lubbock Savvy Shopper” into the search tool) or email us at [email protected] and share your thoughts, ideas, and questions. Also, to stay abreast of developments, follow us on Twitter to get updates: https://twitter.com/LbbSavvyShopper. We have a great community, but we are always looking for newcomers. Do not lose it!
* It’s true! If you don’t believe it (who would?) go to this article: https://reason.com/2011/11/03/the-stupidity-of-buy-american/. As the saying goes, truth is stranger than fiction, because fiction has to make sense.
SEAN FIELDS is AJ’s savvy shopper. Read his columns on Sundays and Wednesdays. Email him at [email protected], like his Facebook page at Facebook.com/LubbockSavvyShopper or see previous columns and deals at lubbockonline.com/savvy-shopper.
