Thursday, April 21, 2016

Do "Buy America" policies really help Americans?

No (

Lindell's Buy-American policy raises other questions. Are American parts more expensive than foreign parts? If so, does he try to pass the higher costs to his customers? If so, he makes it harder for poorer Americans to buy his pillows. A higher price also puts his product—and therefore his company and employees—at a disadvantage in the marketplace. Does he think American consumers care where products are made? Whatever they may tell pollsters, what Americans really care about—judging by their actions—is the combination of price and quality. Let Lindell advertise: "Every part of my product is made in the USA—so we charge you more than our competitors do." The response would be informative.

However, maybe he doesn't pass along the extra cost. Maybe he accepts lower profits. If so, how does he improve his factory, increase employee productivity, and pay competitive wages? If his profit is lower, he also has less money to spend on other American and foreign products and less to invest.

Again, my point is not to criticize Lindell. It's to show that he's not helping America as a whole.

No comments: