Buy American Provision - Made in USA

The US economy is in dire straits with job been lost by the thousands every day. The economic stimulus bill that is about to pass the US congress, has a provision for buying American made raw materials for all projects which will use the money from the economic stimulus package. For a country which has seen a spectacular drop in manufacturing activity, where trying to find anything Made in USA is an adventure in itself, this Buy American provision seems like a total u-turn.

The "Buy American" provision in the economic stimulus package has ensued a heated debated on both sides of the issue with supporters of free trade calling it a protectionist measure and supporters of provision arguing that when US tax dollars are at stake, it is better off if that money is spent on what is produced in the US. So which side is right? Should a "Buy American" provision be forced on the US taxpayers risking violating free trade agreements with other nations and starting off a trade war? If America enacts the "Buy American" provision on all government funded projects, will other nations follow suite and enact their own version of "Buy Local" provision? Will the "Buy American" provision spell the doom of free trade as we know it?

Some answers to these questions can be found on NY Times room for debate blog. Economists, Policy Makers and Historians argue the pros and cons of the "Buy American" provision and what it means for free trade.