Made in America: Patriotism or Impracticality - Essay Example

..7 Abstract The stimulus bill “Made in America” or “Buy American” was initiated to bring back the manufacturing glory of the country. Products mostly iron and steel to be used in stimulus projects must be bought from the local suppliers. However, this bill may also hinder free trade and global competitiveness. Also, the thought of buying cheaper steel in other countries for economic reasons will be hindered. This bill has its advantages and disadvantages. It is up to the people and the government to carefully weigh them.

Keywords: Made in America, Buy American, Stimulus bill Made in America: Patriotism or Impracticality? Introduction “My old man's that old man spent his life livin' off the land, dirty hands, and a clean soul. It breaks his heart seein' foreign cars, filled with fuel that isn't ours and wearin' cotton he didn't grow.” These are the introductory lyrics of the song Made in America by Toby Keith. The song talks about his father who is loyal to the products and practices of the United States. It says that even if it is a little more expensive, he buys only local goods because these goods are made in America and so is he.

Is this loyalty to the country or just impracticality? This paper will discuss the “Buy American” initiative and its possible effects on global marketing concepts and principles. The Stimulus Package The 2009 Stimulus Package that recently passed the Senate on February 10, 2009 provides that “[n]one of the funds appropriated or otherwise made available by this Act may be used for” public works or public buildings projects “unless all of the iron, steel, and manufactured goods used in the project are produced in the United States” (Gallacher, 2012).

Several group of people in the business had contrasting ideas about the bill. Andrew Rose, professor of international trade at UC Berkeley's Haas School of Business, said that nearly a third of all steel purchased in the United States primarily for construction and cars comes from overseas. That is, U.S. steel mills are meeting only about 70% of domestic demand (Lazarus, 2009). She added that if those mills had the market to themselves, it would be possible that their prices would suddenly go up and the country will have nowhere else to shop.

Meanwhile, a survey conducted by the industry-backed American Iron and Steel Institute found that 86% of poll respondents favor using American iron and steel for stimulus-funded transportation and infrastructure projects (Lazarus, 2009). The institute’s president Thomas Gibson said that "Americans want to see American taxpayer funds supporting a stimulus package that will generate American jobs using high-quality, American-made products” (Lazarus, 2009). Back in the days, before outsourcing was done, the United States is one of the countries which excel in manufacturing.

When a product says that it is made in the US, it means that the product passed through strict standards and is assured of good quality. According to Kotler and Keller (2009), one of the fundamental factors that influence consumer behavior is culture. A child growing up in the United States is exposed to values such as achievement and success, activity, efficiency,