Working for the Greater Share

type="html" xml:lang="en-US" xml:base="http://www.financialarmageddon.com/">

Many people still don't realize that at least some of the developments they took for granted during the good times were not self-sustaining and would only carry on for as long as the apparent economic nirvana that ended with the arrival of the global financial crisis.

Once it became apparent that there wasn't enough pie to go around, the spirit of cooperation that had over the course of six decades boosted cross-border trade to an unprecedented degree and stimulated ever-increasing globalization would quickly turn sour.

Instead of working together for the greater good, which is relatively easy during times of plenty, individuals, businesses and governments around the world have felt a survival instinct kick in, and they have naturally become more focused on making sure they -- and those who matter to them most -- garner a greater share of the goods.

That has spawned a protective, inward-oriented political, social, and geopolitical response, which helps explain why, as ABC News reports in "More States Use Purchasing Power to 'Buy American,' Create Jobs," there is growing support for incentives and barriers that ensure priority is given to the needs and interests of friends, neighbors, and others based nearby.

Local Governments Adopt Preference Laws for Spending, Target U.S. Manufacturers

State and local governments, which spend close to $2 trillion annually on goods and services, are increasingly trying to leverage their purchasing power to favor American businesses and create jobs.

Twenty-one states had "Buy American" laws through 2009, according to the National Association of State Procurement Officials, and nearly every state has implemented preference statutes for buying from in-state producers, many added since the recession began.

In Minnesota, law enforcement agencies must buy uniforms and protective gear that's made in the USA, and natural resources officers can only ride all-terrain vehicles built in the state.

Illinois agencies in the market for plastic goods must favor companies that use by-products of Illinois corn. State contracts for printing services are given out first to companies that use ink derived from Illinois-grown soybeans.

North Dakota mandates that state office buildings can only fly American flags that were sewn together on American soil.

"They all are aiming to achieve the same thing: get that economic value out of public spending," said Stacy Mitchell, a senior researcher with the Institute for Local Self-Reliance.

Most states provide exceptions to their rules, allowing purchasers to get their goods elsewhere if similar items aren't available in the U.S. And there's little indication the laws are rigorously enforced.

But Mitchell said the measures can make a difference, particularly as states broaden the use of preferences for state contracts, favoring local businesses even if their prices aren't the lowest.

"A pretty large share of dollars the state spends with local businesses go into local wages. The business is also sourcing some of the stuff it needs to operate from other local businesses. And so there's just more economic activity, more income, and that means more tax revenue," she said.

View the original article here