Columbia International Affairs Online: Policy Briefs

CIAO DATE: 04/2009

Buy American: Bad for Jobs, Worse for Reputation

Gary Clyde Hufbauer, Jeffrey J. Schott

February 2009

Peterson Institute for International Economics

Abstract

On January 28, 2009, the US House of Representatives passed its economic stimulus plan, the American Recovery and Reinvestment Act of 2009. Out of the bill’s 700 text pages, a small half-page section attracted enormous media attention: the section requiring that all public projects funded by the stimulus plan must use only iron and steel produced in the United States (box 1). Another provision, which drew less attention, extends the so-called Berry Amendment (an old Buy American provision) to uniforms purchased by the Department of Homeland Security.