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Monday, December 15, 2008

Buy American! Does it even matter anymore?

Relax, I don’t mean we shouldn’t produce and sell anything anymore in the U.S. I mean, as a positioning statement for products. It used to mean a lot for retailers, but I think that was more of a holdover from WWII thinking. Then, the entire country’s mindset was geared towards the war effort when people were encouraged to do their part and contribute any way they could.

After the war, we needed to keep American first, and what’s more better than Made In America mister! We sold a lot of stuff with that saying though.
Cars, appliances, clothe, etc. What’s more American than seeing the USA in your Chevrolet! Made by Americans FOR Americans! The American car with the French name!

FF >> 2008. Trouble in Detroit with competition from Japan. Foreign factories now build cars here. The electronics industry also virtually eliminated by many Asian countries. Lower tax rates and wages have forced small businesses to outsource jobs and actual facilities overseas. We can keep citing examples all day, but you get the point. I hope.

There’s two dynamics at work here. First, Made In America as way to convince you that the item you’re about to buy is a source of pride for you. Second, made in America as an actual plan to make stuff here that in turn supports and builds local economies, and eventually benefits the country. The latter may be a tougher thing to pull off unless business are incentivized to keep jobs here even though we’ve also had a Buy American Act for 75 years. (Basically, it requires the government to buy from American companies first, except when it’s not in the public interest. You could argue that Government bailouts are definitely in the public interest, but then, the public is more interested in buying elsewhere.)

So, does the Made In America battle cry hurt or help brands and products?


Does Made in America matter?

Yes. No.

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