Why buy American?

If anyone is unaware, let me be the first to let you know that this economy is, in fact, in a recession. Now that is not official, but last month private industry shed over 100,000 jobs. There should be little doubt at this point that our economy is shrinking. But, what does this mean? Besides the obvious fact that many Americans are now out of work, or looking for work, there is the predictable backlash against some scapegoat. Our economic woes aren't our fault, they must be someone else's. I recently received this email that perfectly illustrates what I'm talking about:

As you may have heard the Bush Administration said each and every one of us would now get a nice rebate. If we spend that money at Wal-Mart, all the money will go to China. If we spend it on gasoline it will all go to the Arabs, if we purchase a computer it will all go to India, if we purchase fruit and vegetables it will all go to Mexico, Honduras, and Guatemala, if we purchase a good car it will all go to Japan, if we purchase useless crap it will all go to Taiwan and none of it will help the American economy.

We need to keep that money here in America, so the only way to keep that money here at home is to buy beer, since those are the only businesses still in the US.

What these statements show is a sign of the times, and a shallow knowledge of economics and trade. It is short-sighted to assume that since we buy something from somewhere, that money is gone and we are at some net loss. We are living in a global economy, and America is losing its status as the powerhouse. I imagine that upsets a lot of people. I guess many Americans believe that we should be manufacturing goods, and if we are not, then we are somehow worse off. There is a reason we get all these products from the abovenamed places. They are less expensive! We are buying these products at a lower price than what can be produced here, and we end up with more money in our pocket to spend on something else. We have a net gain! We are better off, why can't anyone see this?

Buying our products at lower prices not only helps consumers, but it also spawns new industries. There is a reason why sales is one of the hottest jobs today. Someone has to package and distribute all these foreign products in America. Who do you think does all this? Americans! Jobs are also created by international trade. For the last ten or so years, we have been trading with these international partners. I didn't hear people complaining then. Only now, after our own housing market and financial industries have collapsed do we turn to the foreign monster.

It is time that we move on from this pointless xenophobia. International trade is a boon to all who participate. Shift can sometimes be painful, as many Americans are noticing, but new jobs and new industries come from this shift. New opportunities will come. Trying to persuade an otherwise ignorant consumer to buy American simply for the fact that it is American is a great way to ensure that this recession continues. You want them to spend more money than they did yesterday for a product because of where it is made? If a product is good, then buy it, it doesn't matter where it comes from. A prosperous global economy makes the world better off and in the long run it will make America better off. Look past the foreign-bashing, and you will see that.