The 'Buy American' stimulus debate

Will a new Democratic "Buy American" proposal help the U.S. job market, or hurt it?

Wind turbine
(Image credit: Corbis)

In a rare public split with the Obama administration, four Democratic senators want to add a "Buy American" requirement to the 2009 stimulus package's renewable energy program, saying that without such a rule the $2 billion project is creating more jobs overseas than in the United States. Sen. Charles Schumer of New York calls the move a "no brainer." But the Obama administration says that making stimulus grants available to foreign firms encourages them to invest in the U.S., and the head of the American Wind Energy Association says cutting out non-U.S. companies would halt projects employing tens of thousands of Americans. Will the "Buy American" rule create U.S. jobs — or destroy them? (Watch a Fox report about the threat on American exceptionalism)

Spending stimulus money at home really is a no-brainer: This is so obviously a "good idea," says John Aloysius Farrell in U.S. News & World Report, it's hard to believe anyone would object. An American University study found that 80 percent of the stimulus money spent on wind turbines went to European, Chinese, and other foreign companies — that's "pure folly." If the work can be done here, with American workers, it should be.

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