'Buy American'

NEW YORK (CNNMoney.com) -- A debate is brewing at home and abroad over an economic stimulus measure that would require materials used in the program's infrastructure projects to be purchased from American companies.

In the $819 billion House bill passed Wednesday, the so-called "Buy American" provision would, with some notable exceptions, ensure that only U.S.-produced iron and steel be used for construction. It expands on a 76-year-old federal law. The Senate, which is likely to take up stimulus next week, would go even further, effectively requiring that any products and equipment be American-made.

"The Buy American provision will help stimulate our own economy," Sen. Byron Dorgan, D-N.D., who wrote the provision, told CNNMoney. "When taxpayer dollars are used, we should urge that money to support the things produced here at home."

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There is a counter argument in every argument. Most people would have taken a side before they start arguing. I can make a frightening case that we all got to be very frighten about this development(trade war ? protectionism?) or I can argue that this is nothing new especially under Democrat ruling. If we go back to history, US-Japan has similar problem under Reagan leadership. In 1987(is that year familiar to you ? - market crash, Japanese conquered the world, record US deficit?, multi-year weak US $ index?), US slapped 100% import tariff on Japanese electronic goods like television, computer, air conditioners and etc. At one time(mid 90s to early 2000), when the US automotive makers could not compete with the Japanese, they accused Japanese government manipulated Yen helping Toyota-san, Nissan-san, etc against McGM, McFord or Mc......



Today, the American has not been making much noises towards Japanese, do you know why? Despite of long period of love-hate relationship, Japanese is still one of the largest US Treasury holders, do you know why? Just some questions to ponder before you are jumping the gun, if this news is disturbing you.