“In a rare instance of agreement, Republicans and Democrats have converged on the idea that “Buy American” provisions should be expanded in order to increase American jobs. But a new paper finds that existing federal rules impose high costs on consumers.
A September 2024 working paper published by the National Bureau for Economic Research (NBER) found the Buy American Act has created more than 50,000 jobs. Just one catch: Each one of those jobs costs the economy more than $100,000.”
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“The economists say “they find scant evidence of the use of Buy American rules as an effective industrial policy.” The BAA does not promote economic growth; it’s a costly “employment measure” that benefits a few by robbing all.”