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The Problem with DHS's Plan to 'Buy American'

An anonymous reader points out a Cnet report on the Homeland Security Authorization Act, which would require that more than 50 percent of the components in any end product bought by the Department of Homeland Security be produced or manufactured in the U.S., writing "The Pentagon has agreements with 21 countries that waive the act, but an amendment that just passed the House would prevent the DHS from waiving the 'Buy American' restrictions. "The president of the Information Technology Association of America observed that this means the DHS may 'have to learn to do without computers and cell phones,' since he could not think of any manufacturers of those devices that would meet the 50% threshold."

127 of 626 comments (clear)

  1. Buy American? by Anonymous Coward · · Score: 5, Funny

    The Saudi Arabs already did. They bought their American -- George W.

    Sad but true.

    1. Re:Buy American? by jd · · Score: 3, Funny

      The receipt clearly says George W was donated, not bought.

      --
      It's a small world and it smells funny; I'd buy another if it wasn't for the money; Take back what I paid (SoM)
    2. Re:Buy American? by Eunuchswear · · Score: 2, Insightful
      France makes a few insulting gestures toward the U.S.
      Um, like what for example?

      Not believing poor old Colin Powell after he'd been lied to?

      That's insulting?

      --
      Watch this Heartland Institute video
    3. Re:Buy American? by Eunuchswear · · Score: 3, Informative
      This Miller seems to have a pretty poor grasp of world events, or even elementary logic.

      Chirac complained about GWB interfering in EU/Turkey relations

      Miller says:


      Chirac lectured Bush: "He (Bush) has nothing to say on this subject. It is as if I were to tell the United States how it should conduct its relations with Mexico."


      Erm...No, it isn't quite the same thing, Chirac. The United States is a continent-sized country of 300 million citizens sharing a border with a smaller Republic to the south. Both countries are sovereign states but with highly developed economic and demographic ties. It would be very surprising if either of these countries didn't sometimes comment on the policies of the other. It would be absurd for France to do so.


      Completely missing the point, Chirac didn't complain about the US commenting on Mexico or vice versa, he said that he (Chirac) had as little right to interfere in US/Mexican relations as GWB has to "support" Turkeys EU membership application.

      Miller then blathers on:



      France, on the other hand, is an economically stagnant country of 60 million. Turkey is an emerging democracy of 70 million dynamic and energetic people. France does not share a border with Turkey. Germany is by far Turkey's largest export market, followed by the US. Next comes Britain. France is sixth on the list. If France doesn't much like the look of Turkey, the Turks aren't much looking at France.


      Oh, dear. France is "economically stagnant". Turkey is "an emerging democracy". So Turkey should just ignore France, eh?

      Of course this is all bollocks. France has a veto on who joins the union, just like all the other member states. Of course Turkey cares what France thinks.

      And, unlike the idiot Miller:



      Chirac speaks for France, not for Europe, when he resists Turkish EU membership.


      Turkey knows that Chirac is in fact one of the EU leaders who are pushing for Turkey's membership. That's why he complained about GWB's wrecking intervention.

      Frankly having GWB "support" Turkeys membership application is just about the best way to make sure it is rejected.

      Which, given the pronouncements of some of the NeoCon nutters, may have been what GWB's speach was for.
      --
      Watch this Heartland Institute video
  2. Hahahaha by Duncan3 · · Score: 5, Funny

    Haven't you heard, Americans are above making things. Our hands might get dirty like.

    Congress is just out of it, like always.

    --
    - Adam L. Beberg - The Cosm Project - http://www.mithral.com/
    1. Re:Hahahaha by Saven+Marek · · Score: 5, Interesting

      Well this is one of those things that shows how the government is out of touch with reality and of what goes on outside of theory. all good and maybe 'faith based' government is like this. believe it and it will come true?

      I remember a US school district dumped apple laptops for schools because they werent made in the US.

      Wonder which US-made laptops they picked up instead. mattel?

    2. Re:Hahahaha by Heian-794 · · Score: 4, Insightful

      So if a laptop is designed in the US and has an Japanese-made CPU, a Chinese hard drive, a Korean TFT screen, a Filipino keyboard, etc., etc. how do they By value? By weight? What does "Made in XXX" really mean anyway?

    3. Re:Hahahaha by MillionthMonkey · · Score: 4, Insightful

      No no no, not true at all. Americans do make things that people want and are willing to pay big money for: overpriced houses.

      It used to be that we ran our economy on manufacturing. Then we made a shift to a "service economy" which lasted a couple years before the services followed the factories. This left American capital with no way to grow. The housing bubble that we are now seeing is a consequence of that capital seeking a way to increase in an industrial economy that doesn't make anything anymore. America is no longer producing real wealth. The housing bubble is a delusional way for residual capital to continue to produce wealth, even if only for a short time.

      Now we run our economy on asset appreciation, and buy all other goods and services from overseas with borrowed money. The only sector of this economy that can appropriately be called "manufacturing" is the construction industry, which has perfected the creation of grotesque McMansions that require a trip in a car just to get to the nearest grocery store. Zoning laws typically forbid anything to be built within walking distance of a McMansion, except other McMansions, so as to avoid even a momentary pause in the overall housing appreciation on which the American economy (and the property tax) depends.

      Paradoxically, it seems everyone wants to live in a place where nobody makes anything anymore, and has to drive to get anywhere (like say a place that sells cheap Chinese crap or oversized food portions) because these house prices just keep going through the roof! I know people who made more money last year just living in their ugly condos than coming in to work. Careers in real estate are extremely attractive at the moment. It's a way you can still make lots of money even if your limited skills prove incapable of producing real wealth. And real estate is a magnet for investors, to the detriment of real industries that need infusion of capital. What venture capitalist in his right mind is going to invest in some factory making widgets when he can sink his capital in some pricey real estate and double his money in a few years? A bubble can often crowd out other forms of investment. Nobody wants to invest in anything but houses or dotcom stocks or tulips or whatever.

      When the bubble pops, an enormous amount of housing will suddenly hit the market as speculators liquidate at the highest price. There will be lots of money flying around for a short while, then it will disappear and America will become a nation of overweight suckers who don't make anything trapped in their houses full of cheap Chinese shit paying adjustable rates with an average 3% equity position on properties that have lost 30-40% of their value since being purchased at bubble prices. And after treating the currency like a cheap whore for so long with overextended credit, we will find that the inflationary pressure on the dollar has driven up interest rates. As incomes collapse, the bond market will be flooded with T-bills crowding out private borrowing as the government desperately seeks capital at high interest to prosecute the wars that secure access to the oil markets upon which this house of cards has been built. It's awfully hard to fight wars when you don't make anything, but we have no choice when we live in houses that require a steady supply of gasoline just to be livable. The plan is to borrow forever and pray that the Rapture comes to save America and help us get out of actually paying all these loans back to the Asian banks who are now nervous about holding so much dollar-denominated American debt.

      I suggest that if DHS wants to "buy American", they should station their field agents in houses in Atherton where the median house price was $2.5 million (when I hit Preview the first time, it may have gone up by the time I clicked Submit). Set up some cheap interest only loans at an adjustable rate. Tom Ridge just has to remember to "refi" every couple months and sell when the getting's still good, and the program will pay for itself, at least for now, maybe until the end of the term in 2008.

    4. Re:Hahahaha by xiphoris · · Score: 5, Interesting

      World banks are actually very concerned that this might happen. However, our saving grace currently is that other countries have invested too much money in our economy. They can't withdraw their money; if they did then what you described would be very likely to occur.

      As pointed out in popular movies such as Fahrenheit 9/11, Saudi money comprises a couple percent of the US economy. That's a lot. About as much as Wal-Mart.

      If that money went away we'd be feeling it very hard. But, I think there's a 90% chance that doesn't happen.

      Think of it as a game of chicken. The US and other countries are in a game of chicken. We all know that our currency is quickly losing real value, but people are too afraid and too dependent on the US economy to "pull out". Japan might be a big electronics buyer itself, but many more of its products are shipped overseas, primarily to the USA. If our market of consumers disappeared, so would their production economy.

      The game of chicken continues until one of two things occurs. (1) Other countries pull out of the US. A cascade effect occurs and the world is in a depression. (2) Other countries don't pull out and slow, steady inflation causes US foreign debts to be effectively erased.

      Lots of powerful companies are banking on #2 to happen. If #1 happens, everyone loses, but if #2 happens, it's really the poor people, the factory workers and sweatshop slaves, in 3rd world countries that lose out.

    5. Re:Hahahaha by ta+ma+de · · Score: 3, Interesting

      I thought I was the only one this cynical. I have gone back to school to earn a second B.S., my third college degree -- I already hold a B.S. and a M.A. In addition to the science and math curriculum I'm studying Chinese; for reasons that you should find self-evident. I was in Beijing in 2000 and have friends who have been to China even more recently and it is clear that the well paying and rewarding work is already-in or will be in Asia. And when I'm done with school I will hold a B.S in Fine Arts and Communications, a M.A in Design and Writing, a B.S. in Math and Chemistry, a Ph.D in Computational Chemistry and speak fluent Mandarin. And that will qualify me to go anywhere I damn well please and earn a good living, which will likely not be in my country of origin; USA.

    6. Re:Hahahaha by Glowing+Fish · · Score: 4, Interesting

      You should print this out and mail it to yourself certified so you can prove your "I told you so" points.

      I don't have quite such a dire view as you do, though. Of course, the thing with economics is when we realize the worst that could happen, we can prevent it from happening. The fact that the government knows that Weimar inflation is possible, makes it improbable.

      However, the current government, to say the least,
      seems to have the habit of ignoring reality. The thing is, the American economy actually can survive quite high trade and budget deficits for a while...but not forever. I believe that if we are lucky, as the American dollar gets weaker, imports will get more expensive and manufactring will be cost-feasible in this country. Thats the good version. The bad version is some type of shock hits the global economy, people panic, people pull money out of the economy, the US can't find a way to fianance its debt...and general badness follows.
      For my own "I told you so" points, I wrote about this happening in May of 2003:
      The Two Tiered Economy

      --
      Hopefully I didn't put any [] around my words.
    7. Re:Hahahaha by Captain_Chaos · · Score: 3, Insightful

      The game of chicken continues until one of two things occurs. (1) Other countries pull out of the US. A cascade effect occurs and the world is in a depression. (2) Other countries don't pull out and slow, steady inflation causes US foreign debts to be effectively erased.

      There's a number (3): the world economy gradually loses its dependency on the US economy, then other countries pull out of the US, and the rest of the world is just fine. This is what I think will happen over the next fifty years.

  3. duh.. by Dance_Dance_Karnov · · Score: 3, Funny

    I don't own a single piece of electronics that was made in the US. Infact I don't know anyone who owns any american electronics. Do such things even exist anymore?

    1. Re:duh.. by 0mni · · Score: 3, Informative

      Based in america yes, but are 50% or more of their components made in US, I think you would have a hard time finding any of them above 10% US made components.

    2. Re:duh.. by TripMaster_Monky · · Score: 5, Interesting

      Yes, but it's usually high end and thus out of reach of the masses.

      examples:

      Bose Wave Radio
      McIntosh audio equipment
      Apple's XServes
      IBM servers and mainframes
      Cisco Routers
      Netopia Routers
      AMI Motherboards
      Lots of commercial electronics for things like autos, CNC machines, telephony ... etc

      The same goes for electrical components that you don't see like Illinois Capacitors, TadCom resistors, several OEM power supplies ... etc.

      The real reason that so much industry has moved overseas to places like China and India, is that there are very loose environmental and worker safety rules. Manufacturing electronics involves toxic chemicals that are very expensive to dispose of in Germany, US and Japan ... but in China you can just dump these chemicals out the back.

      --
      __________
      |rip/\/\aster /\/\onky
    3. Re:duh.. by dabigpaybackski · · Score: 5, Insightful
      The real reason that so much industry has moved overseas to places like China and India, is that there are very loose environmental and worker safety rules. Manufacturing electronics involves toxic chemicals that are very expensive to dispose of in Germany, US and Japan ... but in China you can just dump these chemicals out the back.

      Yes, that's right, and those people are poisoning themselves, particularly in China. The pollution in the industrial cities is so bad that if it goes unchecked, it will, paradoxically, threaten their economic survival. Ruined land and water is no good to anybody.

      Tangentially: have you ever driven on I-80 through the Rust Belt? I'm talking about former manufacturing hubs like Buffalo, Gary, and parts of Cleveland. They look abandoned. And the factories? Rusting and abandoned. It's sad, not only because of the unemployment and social upheaval, but because great swaths of that abandoned land cannot be reclaimed for agriculture. The soil and groundwater is too polluted. So the hulks of the factories remain, the rusting monuments to America's fading greatness.

      Now, what's really eerie are all of the abandoned strip malls: just boarded-up buildings and weedy expanses of grey asphalt. Nearby, you find housing built in the 40's and 50's, some abandoned by the people who once made their livings in the factories, some filled with poor immigrants, others by retirees who try to keep up appearances and put out their flags on Independence Day. I'm not being lurid here, either. There are a thousand towns like this and they are depressing places. What will become of them?

      --
      "OH SHIT, THERE'S A HORSE IN THE HOSPITAL!"
    4. Re:duh.. by Pig+Hogger · · Score: 2, Informative
      Isn't Northern Telecom US-based?
      Actually, it is canadian...
      What about General Electric?
      Intel?
      Wall-Marde is also US-based, but you'd be hard-pressed to find anything US-made in their stores...
    5. Re:duh.. by Guppy06 · · Score: 5, Funny

      "Yes, that's right, and those people are poisoning themselves, particularly in China. The pollution in the industrial cities is so bad that if it goes unchecked, it will, paradoxically, threaten their economic survival."

      What China needs is an armed revolution by the working classes, overthrowing their government and setting up a true worker's paradi... oh, er, nevermind.

    6. Re:duh.. by Anonymous Coward · · Score: 3, Interesting

      What will become of them?

      Eventually there'll be no more small farms to confiscate through eminent domain or blighted land clauses (or steal through various social programs). At that point, it'll be cheaper to turn an abandoned strip mall or abandoned factory into something else than it will be to force 50-60 millionaires out of their $500,000 homes (sitting on an entire half acre each!).

      Like most everything else, this is a cycle. We'll eventually have to choose between un-improving/un-developing (what a dumbass term those real estate people have) land or not eating. The lesser sadness of this is that when we come back around to this point in the cycle, we'll be much worse off, because some things done to land can ruin it for tens of thousands of years (assuming we don't end up like the folks in ``I Put My Blue Genes On'' where there's no humanity left).

      The greater sadness is that I see this now; you also see this now; hundreds of people see this now, but they're mostly the ones doing the small farming which doesn't lend itself to gaining the political power necessary to stop this.

      Hear me Oh My Representitives! It's only cheaper to bulldoze that forest to make a factory if you don't consider all the factors! That abandoned factory on the edge of town is really the cheapest place to put your new factory. Preserve the small farmer his land!

    7. Re:duh.. by Adult+film+producer · · Score: 4, Informative

      Just a bit north, near Detroit at the River Rouge (extremely industrialized part of michigan) and also one of the home to one of those SuperFund sites, the contamination is so great that a person, without protection, supposodly will get cancer within 20 minutes of exposure.

      As a kid, my dad would bring my brother and I down there in the boat and watch the fires. Fires, literraly on the river, they'd just start spontaneously, it almost seems surreal thinking about that experience. It was almost like a weird scene out of mad-max/apolocalpyse now/terminator.

    8. Re:duh.. by Paul+Jakma · · Score: 2, Informative

      For example, Intel's fabs are in Costa Rica, the Philippines among other places.

      According to Intel, both Costa Rica and Philipines sites are assembly / testing facilities, no Fabs. The actual Fabs are in New Mexico, California (possibly), MA (the old DEC facility I think), Oregon, Ireland and Isreal.

      --
      I use Friend/Foe + mod-point modifiers as a karma/reputation system.
    9. Re:duh.. by dabigpaybackski · · Score: 3, Interesting
      My hunch with respect to the blighted land is that in the 21st century, environmental reclaimation technology will be the big, big growth industry, as we become aware of what we are doing to ourselves by shitting in our own nest. We are awash in poisons. The groundwater's fucked--it's full of MBTE, which we cleverly thought would lessen air pollution. Well, it did that, but the damnable stuff leaks out of containment the way tritium does, gets into aquifers, and makes the water undrinkable in the minutest quantities. Now, how the hell does one clean out an aquifer? Right now, the only thing we can do is wait for the molecules to break down, and with a great many toxics, that takes a long time.

      As for soil reclaimation, the situation is better. There has been a lot of research into high-temperature composting, which breaks down toxic leftovers in the soil. Alas, if that soil contains heavy metals, as is often the case, then those must be removed by other means. All of this is quite labor-intensive, and therefore expensive, but some brownfield sites have been turned into parks and gardens this way. I, for one, would love to see a rejuvenated Rust Belt. I'd also like to see the people responsible for these messes be forced to clean them up, rather than socializing the problems that capitalists created, which is what we're doing now.

      --
      "OH SHIT, THERE'S A HORSE IN THE HOSPITAL!"
    10. Re:duh.. by jbplou · · Score: 2, Informative

      Texas Instruments makes some chips in the US as well. So does Intel.

    11. Re:duh.. by Anonymous Coward · · Score: 2, Interesting

      My hunch with respect to the blighted land is that in the 21st century, environmental reclaimation technology will be the big, big growth industry, as we become aware of what we are doing to ourselves by shitting in our own nest.

      I was referring to the trick where when a city decides it wants your farm or forest to build a factory (even though there are several abandoned ones to choose from in the immediate area), they'll threaten to declare your land blighted so that you can't use it anymore. ``Sell your land to us or we'll declare it blighted and use eminent domain to take it for the price of blighted land.'' Then they ``clean'' it up and sell it to a local politically connected guy to drop a factory on it (again, even though there are lots of failed factories around, this one will for sure bring in some jobs!). There's some irony in using a Socialist mechanism to achieve Capitalist ends.

      All of this is quite labor-intensive, and therefore expensive

      It'll eventually be ``worth it'' to pay for the cleanup. It's actually worth it now, if you draw the lines for the closed system correctly, but most people don't which is why we're where we are now and why things will get worse before they get better. It'd sure be nice if we could keep things from reaching some devastating terminal point, though.

      socializing the problems that capitalists created

      Capitalism drives things towards an equilibrium. I would argue that an equilibrium between Too Much Poison and Not Enough Poison isn't desireable. Some controls about requiring closed wastewater systems and total nonpollution of the surrounding area would be devastating in the short run, what with China et. al. not having to follow the same rules, but in the long term we'd come out far, far ahead (being able to eat and all). At any rate, I'm not an economist, and they'd scoff at a lot of opinions I have, but economic theories don't grow tomatoes.

    12. Re:duh.. by (negative+video) · · Score: 2, Informative
      Now, how the hell does one clean [MTBE] out an aquifer?
      Big-ass pumps, an air stripper to move the MTBE to the gas phase, activated charcoal to trap it temporarily, a heater to periodically drive the it off the charcoal, and something that can incinerate or trap the recondensed nasties. These systems are available commercially. It is more expensive than not leaking the nasties in the first place, but they are by no means permanent additions to the soil.
      I'd also like to see the people responsible for these messes be forced to clean them up, rather than socializing the problems that capitalists created, which is what we're doing now.
      They're dead and/or bankrupt. You might as well sue the Romans to abate Hadrian's Wall.
    13. Re:duh.. by crazyphilman · · Score: 3, Funny

      Who cares? I bought my Panasonic Toughbook 28 on Ebay, and it ROCKS! It's water-resistant, shockproof, and armored (even the LCD).

      It was made by the ever-cool Japanese, who are the source of most anime, all sushi, and many fun-to-practice martial arts. They're also the people who forced the U.S. auto industry to make an effort to produce good cars again. And (this is the trump card) they gave us the Playstation II.

      Yay, Japan! Keep up the good work, guys, we love ya.

      --
      Farewell! It's been a fine buncha years!
    14. Re:duh.. by Digit+Machine · · Score: 2, Insightful

      It's funny that you mentioned this part of the "Rust Belt". I live in Youngstown, OH and know exactly what you speak of. There are so many shut down factories all over. I was told that anyone buying the land would be responsible for bringing it up to epa standards, which is cost prohibitive. Our economy is in the shitter and only getting worse. The only thing keeping this area alive is GM's Lordstown assembly plant, that makes the Chevy Cobalt. That is our area's #1 employer, with the two large hospitals being #2 and #3.
      I have a bad feeling that we are in fact ahead of the times. It seems like the entire country is gradually losing their industry and becoming some sort of empty wasteland. There doesn't seem to be any way a service and information economy can survive without producing anything of actual value.
      Meanwhile the country seems to only be concerned with what will happen on next weeks "Desparate Housewives", who will win "Survivor", and who the next "American Idol" will be. And we pick our government on inconsequential issues like gay marriage, abortion, and so called "family values".
      How important is all this crap if you cannot eat?
      I guess that's enough ranting for one night.

  4. DHS by FidelCatsro · · Score: 5, Insightful

    a rather stupid rulling here , If your going to run a department which deals with national security it is in your intrests to use the best avaliable .Arguments on the usefullness of the DHS aside , if they want to perform to peak effiency they must use the best the world has to offer not the best the USA has to offer.

    --
    The only things certain in war are Propaganda and Death. You can never be sure which is which though
    1. Re:DHS by wft_rtfa · · Score: 2, Funny
      a rather stupid rulling here

      Yes, when I think smart decisions and effiency, I think US goverment.

      --
      :-] :0 :-> :-| :->
    2. Re:DHS by FidelCatsro · · Score: 3, Interesting

      Which is most likely why they picked it for a "Buy Home brands " initiative .
      the DHS never really apeard to be a main gouvernment brach dealing with the national security , after all you have several organisation who already partake in that function. It is as QUANGO organisation set in place to put peoples minds at rest.

      --
      The only things certain in war are Propaganda and Death. You can never be sure which is which though
    3. Re:DHS by SaberSix · · Score: 5, Informative

      As a Government acquisition professional, I would like to point out that buy American does not apply to commercially available products. It is recognized that market forces will generally provide fair pricing.

      This ruling applies to custom development (hardware/software) only. So DHS can buy all the cell phones they want from Taiwan. If they want buy something that does not exist in the commercial market, then "Buy American" applies.

    4. Re:DHS by LetterJ · · Score: 2, Insightful

      Yes, but much like a 7th grade kid, who is on the "friend" list changes like the weather. Oh, the big ones are consistent for longer: Cuba and North Korea are on the longtime non-friend list and Great Britain would probably have to burn the White House again to fall off the friend list, but watching countries like Iraq (with no change in leadership) go from being backed to being the number 1 threat in the world over a few years makes it much more a case of $friend being declared a variable rather than FRIEND as a constant.

    5. Re:DHS by metlin · · Score: 2, Insightful

      Ah, but that's the irony.

      What _does_ the USA have to offer? Think about it - almost all the manufacturing industries have moved out/are moving out, and the US is largely going towards being nothing more than a consumer (okay, maybe I'm exaggerating a little, but you get the idea).

      But that's not necessarily a bad thing, either. As long as you are the economy controlling those industries outside of the US and have a good enough purchasing power, things will be fine and dandy.

      The only way to ensure that things don't go wrong is to ensure that we still have that purchasing power - by being trendsetters.

      Think about it - if we are to become #1 in bioinformatics or quantum computing or the energy industry, then we'd have a card to buy stuff with.

      Other than arms and the dollar, the US has very little to offer to the outside world - it is primarily a war economy, nothing more.

    6. Re:DHS by RandomJoe · · Score: 5, Interesting

      I wish you would explain that to the Corps of Engineers! At least, the a$$holes I have to deal with... We use "commercially available" products to install our HVAC systems (they could go down and buy them from most any parts house themselves), but we certainly DO have to comply with Buy American when doing the job. Or so they say, and since they control the purse strings...

      This leaves us in a bit of a bind. Most foreign-made items we use DO have an American made option, but it is - horrors! - an INFERIOR option. One we would never use otherwise. Luckily, the more critical components are made by companies that the DOD has on their exceptions list, but it still means we have to deal with the paperwork verifying that.

    7. Re:DHS by yppiz · · Score: 2, Interesting

      Assuming the parent and grandparent posts are correct, what prevents some outside company making a commercial tool that fits the DHS's needs is only that it is unlikely that a custom tool the DHW would want also has broad market potential.

      In other words, for a company to make a commercial tool just for a DHS spec, it would be essentially coding on spec but without a contract. And given that the DHS would presumably be putting out a contract because they couldn't find the product in the market already, that implies that it is there aren't enough other interested custmers in this product.

      Short answer: nothing is preventing someone from doing this except market risk and reality.

      --Pat / zippy@cs.brandeis.edu

    8. Re:DHS by Anonymous Coward · · Score: 2, Insightful

      I work for a manufacturer in a non-electronic industry and the Govt requires us to comply with the Buy American Act. The problem is the pricing they require is difficult to meet with the products not made at our Mexican factory unless we want to sell to them at a loss. That is generally not a good business decision if you plan staying in business. The only products we can make in the US are the higher quality ones that have many options, ie build to order. We can't make the commodity products in the US because all of our competitors had already moved overseas and they would kill us in the market. There are also other customers who demand US made products, but they only want to buy the cheapest thing around. Unfortunately these are rarely the same thing.

    9. Re:DHS by demachina · · Score: 2, Interesting

      I don't suppose it ever registered with you that if you are concerned about the security of your nation there might be value in having domestic manufacturing cability for things like computers and cell phones.

      If you transfer all of the production capability necessary for the existence of your society to other nations, China for instance, what exactly do you do if:

      A. There is a war with China and it engulfs Taiwan, Korea, Japan and the rest of Asia.
      B. China decides to exploit its stranglehold on your economy as fodder for various forms and degrees of blackmail.

      Not a big fan of Congress passing laws, and it sure is a clumsy and staggeringly expensive way to achieve it, but I can see some value in preserving domestic capacity to design and manufacture things, especially things like IC's that are dual use and essential to national security in peace time and to national defense in event of a war. I wonder how many weapons the U.S would no longer be able to manufacture if the flow of goods from Asia were severed.

      Perhaps in our globalized world we have moved beyond a global war but somehow I doubt it. What exactly happens when you have a world war in a world with a globalized economy. China has a huge advantage becuase it is rapidly acquiring all the industrial capacity necessary to fight a sustained conflict, an advantage that was America's during World War II. The U.S. is increasingly a land of service jobs, overpaid execs, marketing and incapable of producing anything of tangible value, excepting maybe weapons. America is increasingly in a position it would have to win a big war fast with the weapons it has because it couldn't fight a sustained war where there is attrition of its weapons and weapons platforms and where industrial capacity is essential to survival. Its hard to even rebuild that industrial capacity if all the machine tools and fabs have been crated up and moved to China.

      You better hope F-22's are invincible because if they were taken out in large numbers they would be nearly impossible to replace in event of a real war.

      There is also a concern with things like computers going in to security critical facilities like the DHS, NSA, DOD and FBI which are manufactured in a potentially hostile country. They can be designed with subtle and exploitable flaws and back doors and its pretty hard to go over every one of them with a fine tooth comb.

      --
      @de_machina
    10. Re:DHS by BrianH · · Score: 2, Interesting

      What does the USA have to offer? Resources.

      Minerals, chemicals, and enough food to support nations that are unable to grow enough to support their own populations.


      Minerals? IIRC, every major gold mine in the US is foreign owned. Environmental protection laws are also driving up the cost and regulatory burden on mines so steeply that very few new major mines have opened in the past several decades, while dozens have closed. Mineral extraction is a fading industry in the US...the number of mines and miners continue to dwindle, and the profits from those mines rarely benefit this country anyway.

      Chemicals? When was the last time a major new petrochemical plant was built in the US? Most American chemical companies are now putting their production facilities in Mexico and other neighboring countries where environmental and safety laws are less stringent. While the profits of this industry flow back into the US, it's arguable whether Mexican produced chemicals are really US products anymore...we're more of a middle man at this point (and we all know who gets cut first when budgets get tight).

      Food? I live in the California Central Valley, arguably one of the most productive agricultural areas on the planet. You know what I see? Every year, countless thousands of acres of irreplaceable farmland being paved over for suburbs and strip malls. I see the government in an all-out attack to end pesticide use, stop cow flatulence, and restore irrigation water to their source rivers. While these may be laudable goals, their result is the same...farming is dying here. Nationally, the US is losing farmland at an incredible rate as fields are abandoned and built over. In fact, there is less production farmland in the US today than there was 100 years ago. We are rapidly becoming a food IMPORTER, not an exporter.

      Economically, the US is becoming a net importer in just about every category, and is basing its continued economic dominance on the theory that its citizens can own and manage the resources being produced by other countries. Eventually the citizens of those countries are going to grow tired of American domination and either nationalize those assets or begin producing the same products with their own money and management...and put us out of business because their lower CEO salaries and the fact that they aren't beholden to stockholders will give them a HUGE price advantage.

      --

      There is nothing so pathetic as seeing a beautiful young theory roughed up by a tough gang of facts.
    11. Re:DHS by Shadowlore · · Score: 2, Interesting

      What _does_ the USA have to offer? Think about it - almost all the manufacturing industries have moved out/are moving out, and the US is largely going towards being nothing more than a consumer (okay, maybe I'm exaggerating a little, but you get the idea).

      A little? More than a little. Quite abit more.

      There are 14.5 million U.S. manufacturing jobs. About a quarter of those are low-risk for export as no other nation has enough ability to even challenge them. About 2/3rds are in a "medium risk" level where some niche markets and countries *could* become competitive.

      But then again, a smart observer does not base it all on jobs. Productivity per-worker increases have a far more dramatic effect on manufacturing than mere jobs level measurements. So too is R&D.

      US spending on R&D by US companies amounts to 3% of GDP, or about 277 billion/year. By comparison, the EU average s 2%, and OECD countries average 2.3%.

      US import of GDP is about 10%. By comparison, China's import of GDP is about 25%.

      Manufacturing production in the US more than doubled from 1970 to 2000. yet manufacturing employment fell from 25% to 13% over that same period of time. As I said above, productivity gains are not to be idly dismissed.

      Between the years 1982 and 1977 manufacturing jobs fell by 1.7 million. Despite this, the value of goods manufactured in the US approximately tripled, and the number of facilities increased by just under 10%. In manufacturing, productivity is king. Yet despite the increase in plants from 1977 to 1997, over 117,000 plants closed. Plant closings are an ongoing thing. Indeed, studies have shown that on average over a 5 year period, 32% of plants are closed. here, too, productivity is a key player.

      Plants that survived were .9% more productive than average, and 3.3% more than plants that were closed. Today we have over 360,000 manufacturing plants in the US.

      Indeed, since 1940 US Manufacturing has remained remarkably stable. Since 1940 manufacturing output as portion of GDP has oscillated between 16 and 19%. The low point during the recent correction was, IIRC, about 16%.

      Again, productivity is king, and the US is still driving productivity gains.

      China, for example, will have little incentive to drive productivity gains. Productivity gain drivers are largely a function of labor pool, of which China has a rather large pool. And despite the hooplah in the media, China is actually running a trade deficit, and has been for a long time. Their manufacturing is primarily around building things they need such as concrete for roads, buildings, etc.. In an actual analysis, Chinese products are no more advantageous than it's neighbors.

      The EU is moving ostensibly to a service driven economy (read: doomed to failure economy), and trying to get out of manufacturing (btw, most of the "exported" manfuacturing went to Europe a long time ago). This leaves Japan, Russia, and various Asian countries.

      Of those, Russia has a lot of problems to overcome before it can become a manufacturing giant to rival the US. Japan is still getting itself built back to workable state (and doing a fine job of it, expect "sudden" news on this front in the next few years). After these two, there isn't much left in the way of manufacturing potential to rival the US manufacturing.

      Indeed, when looking at US direct foreign investment, over half of it goes to Europe. Mexico got about four percent, China less than one percent. India is statstically non-existent as far as US investment abroad.

      Chinese labor costs per unit are rising faster than US costs per unit. This will have significant impact on Chinese exports and their costs. Indeed, due to rising labor costs in the 1990s South Korea had a loss of 15% of manufacturing jobs, whereas the US shed a mere 3% during that same time (and remember, production was still rising in the US).

      And last but not least, if you look at the global manufacturing levels

      --
      My Suburban burns less gasoline than your Prius.
  5. sad by Anonymous Coward · · Score: 5, Insightful

    i find it sad that our own government agencies are being forced to buy american because they wouldn't otherwise. what does that say about the american economy?

    1. Re:sad by d474 · · Score: 2, Interesting
      "i find it sad that our own government agencies are being forced to buy american because they wouldn't otherwise."
      Rather than call it sad, I'd call it hypocritical. It's proof that the people at the top don't truly believe in 100% free market capitalism, contrary to what all their constituents seem to chant like Republican mantras.

      Guess what companies are going to be making these custom products for DHS? The same companies that spend hundreds of millions of dollars lobbying in Washington to secure US taxpayer money for their contract pipelines.

      People will then yell, "What, do you want DHS to send those contracts to countries overseas?!? Traitor!"

      To which I need not reply, because these are the same people that yell "Free market capitalism!" when people voice concern over the vast amount of products being pumped through Long Beach, CA from China and distributed by the likes of Wal-Mart/Target/etc.

      My point? Anyone please tell me, what makes sense in respect to the future of this country? I'm not so against the Corporate Welfare, but what I am against are the people who say they support that, but not social welfare for the masses. Hypocritical, and corrupt.

      It's like the opposite of Robin Hood: Steal from the poor, give to the rich.
      --
      Authority questions you. Return the favor.
  6. The problem really is by Timesprout · · Score: 4, Insightful

    that the 'Buy American' scam is really just an attempt to protect American companies from cheaper competitors under the guise of 'security'

    --
    Do not try to read the dupe, thats impossible. Instead, only try to realize the truth
    What truth?
    There is no dupe
    1. Re:The problem really is by larien · · Score: 5, Informative

      No, they'd never do something as low and underhand as that... That would be like putting an illegal tariff on steel imports...

    2. Re:The problem really is by alexo · · Score: 5, Informative

      > That would be like putting an illegal tariff on steel imports...

      Or, say, softwood lumber?

    3. Re:The problem really is by dabigpaybackski · · Score: 3, Insightful
      Flamebait? Who's the clown who modded the parent as such? Unfortunately, he is correct. Many large American companies have lost their competitiveness because their government connections allow them to function as de facto state industries. Witness the Chrysler bailout, for example. Good grief. A once-successful company is permitted to get sloppy in design and manufacturing because it is protected from foreign competition. Then, despite its protected status, it still manages to squander that advantage and slide into insolvency, jeopardizing the livelihoods of thousands of ordinary people. So in steps the Congress with wads of cash to buy the votes of the grateful workers, and Chrysler lurches inefficiently along to this day, churning out their mediocre vehicles, a la Fiat. The other two U.S. auto makers aren't doing well, either. Meanwhile, Toyota, who, because of the tariffs, manufactures most of their U.S. market content domestically, continues to gobble up the Big Three's marketshare by selling a better product.

      Other sectors, like textiles and consumer electronics, are not shielded by tariffs and consequently, those companies have either shut down or been moved overseas, ironically enough to places like China and India, who place outrageous tariffs on numerous categories of imports in order to bolster their own industries.

      This is a situation that directly pits U.S. economic strength against the cheap, tariff-protected workers in the Asian economies, a losing proposition for the U.S, which is why we see political band-aids like DHS's unworkable subsidy program. The "Buy American" program will reassure the more naive voters that the new state police buraucracy will not only protect their physical safety, but their economic safety as well, when in fact it will do neither, not only because they are as incompetent as any other government agency, but because the American industries to provide the equipment they need no longer exist. If it proceeds, it will resurrect in a certain, zombie-like fashion, a passel of inefficient, politically-connected companies (I'm thinking Bechtel and Halliburton here) who will draw their pay more or less directly from the pockets of taxpayers. You could call it socialistic, but a better term would be "crony capitalist," which is socialism for wealthy parasites. It is very much like the New Deal programs, but unlike the America those programs helped/fleeced, I don't think the modern America will recover. We've become a vulgar mob administered by feudal masters, but I digress.

      Now, let the real flaming begin. I think I hear the ultranationalists coming...

      --
      "OH SHIT, THERE'S A HORSE IN THE HOSPITAL!"
    4. Re:The problem really is by IWantMoreSpamPlease · · Score: 2, Funny

      Comparing Chrysler products to Fiat products (at least the ones available in the US when Fiat was here) is unfair.

      Fiat made vastly more *interesting* cars.

      --
      So rise up, all ye lost ones, as one, we'll claw the clouds.
    5. Re:The problem really is by snoig · · Score: 4, Informative

      Uhhhmm, Daimler Chrysler is no longer a U.S. auto maker.

    6. Re:The problem really is by Anonymous Coward · · Score: 2, Interesting

      I work for a French company in the US. Our
      products are excellent, competive and American
      made.
      There are no outrageous price barrier between
      Europe and America. We buy a lot from France and
      sell a lot to France. The problem is not Europe
      but Asia.
      When we sell products in India they have to be
      made in India because India charges 60% duty on
      imports. Korea and China charges outrageous prices
      as well. More and more companies are moving their
      operations to India and China to be able to
      compete in Asia and America.

      The losers are Americans, Canadians and Europeans
      in this stupid race to the bottom.
      Products from India or China are not better, just
      a lot cheaper.

      We should charge the same tariff as they do and we
      would do better economically.

  7. Not to worry... by sampowers · · Score: 5, Funny

    No need to worry about this. DHS will just have the regs changed to mean that 50% of components by weight must come from within the US. Then they can just add lead weights to every computer case and cell phone housing manufactured in the US, to allow all those patriotic manufacturers to make some scratch off the war on terror.

    9/11! NEVER FORGET!

    1. Re:Not to worry... by miffo.swe · · Score: 5, Funny

      This is kinda funny and tragic at the same time. In Russia they often added weight to goods. That was because production was mesured in weight and not in quality or finish. A heavy bed was considered "better" since it showed the plant made much stuff.

      The US is getting awfully close to old Russia theese days.

      --
      HTTP/1.1 400
  8. Who makes what by tftp · · Score: 4, Insightful

    The United States manufactures primarily US Dollars. Military hardware is second to that. In exchange for these two products, other countries send everything else here.

    1. Re:Who makes what by thogard · · Score: 2, Insightful

      Food exports are shrinking and heading the same direction as everything else. I'm starting to see processed foods that are made in China. One example is Oreo cookies.

  9. Economic madness by Toby+The+Economist · · Score: 4, Insightful

    This is insane.

    The sum result is that the products bought will be more expensive than they would otherwise be.

    What exactly is the benefit of this? American companies benefit by having more trade? but they're *paying* for that additional trade in their taxes, because the State has to pay more to buy the more expensive products.

    --
    Toby

  10. Re:bad idea. by peculiarmethod · · Score: 5, Insightful

    I believe it. It seems we are (sigh) again repeating history. After large battles we temporarily go into short periods of extreme isolationism of one sort or another. This seems to be one of those knee-jerk reactions. Think about when the buy American stuff started (which war was it again? umm, WWII perhaps?). And which cars do we hate the most? (other than Ford, I mean) Oh thats right.. the cars built by our greater adversaries. Ignoring good technology to punish others or to feel self righteous is only self defeating and limits your possible options. This, too, shall pass.

    --
    ** "It's not my job to stand between the people talking to me, and the ones listening to me." -- Pego the Jerk
  11. Textile based products? by numLocked · · Score: 4, Interesting

    What about things like uniforms? I know most cheap bulk clothing is manufactured in East Asia.

  12. I don't care, buy it cheap! by MBCook · · Score: 2, Insightful
    OK, this is stupid patriotism. Buy it cheap. I WANT you to. Let's look at the options. We can buy something American for $10 each, or we can buy it from China for $2 each (purely hypothetical numbers, my argument holds as long as the American item is more expensive, and when it's not, just buy American).

    So the government can spend an extra $8 per item times how ever many items. What does that mean? That means they raise taxes to pay for it. That is always good for our economy. Sure that money is going to US companies, but it is getting taxed right back.

    If we buy foreign, we SAVE $8 per item. There are two ways to look at that. There is the civilian, and the governement. The civilian ways say they need less money, so the government can send the money elsewhere (medicare, medicade, SS, military, etc.). The government way says that they can keep the same budget and spend that $8 on other things, like heated toilet seats (joking).

    Either way, it is more efficient to buy foreign if cheaper. Spend the extra on little American flags to give out to anyone who calls you anti-american for voting to allow them to waive the provision. Save the flag waiving for when it matters, not pointless rules to make you look good.

    --
    Comment forecast: Bits of genius surrounded by a sea of mediocrity.
    1. Re:I don't care, buy it cheap! by anonicon · · Score: 4, Insightful

      "So the government can spend an extra $8 per item times how ever many items. What does that mean? That means they raise taxes to pay for it."

      Haven't you heard? The government has been cutting taxes for the last 5 years and sticking the difference in the national deficit. 'Cause, you know, that's free money that the taxpayers of America aren't responsible for.

    2. Re:I don't care, buy it cheap! by Catbeller · · Score: 5, Insightful

      Ah, the horror of cost accoounting.

      That $8.00 per item savings translated, in the past two decades, into complete shutdown of the textile and clothing manufacturing industry in the U.S. That meant millions of people thrown into the local Wal-Mart job, if they were lucky, and onto welfare if not. And Wal-Mart exists because it passes its healthcare on to the local state's tax-supported public services -- not to mention the number of Wal-Martish employees who are on food stamps because they aren't paid enough to eat.

      That eight bucks cost us our electronics sector, our manufacturing sector, software, it goes on and on.

      The "savings" is localized on someone's balance sheet. The cost incurred to generate that savings is measured in ruined careers, disappeared industry, impoverished people, and let's not forget, the almighty national security hole caused by our inability to make our own defense equipment.

      The savings in moving our economy overseas goes into few pockets, but the costs come out of all our taxes. And the real costs never show up in the Economist or the cable news shows, because those are paid by the poor and almost-poor, the invisible majority that don't really count.

      Those tax savings are lost on the back end.

    3. Re:I don't care, buy it cheap! by Anonymous Coward · · Score: 2, Insightful

      Indeed.

      Keep the money in the country.
      Buying a $2 Chinese POS means $2 to China, paying Chinese workers and inflating the Chinese economy.

      Buying $8 American means helping the defeceit, not having to pay $6 social secuity to the American who got layed off because of China. Buying $8 American means the government gets back a certain amount in Taxes from the American workers.

      People here with this "buy from China" attitude are blissfully unaware that for every $ going overseas it costs us another 10 here to keep america going.

      I'm not even American, but I feel more American that the rest of the tossers here.

      I say the government SHOULD force DHS to buy American, I'd be upset if the didn't.

      The Americans here should be ashamed of themselves for not sticking up for their own country.

    4. Re:I don't care, buy it cheap! by MBCook · · Score: 2, Insightful
      So instead of sinking or swimming economically in the global market, all the US industries should that inability to perform codified in law forever?

      Arguments of wages and such aside (which is one of the major ways other countries undercut our price), there will always be jobs that are just cheaper to do locally (unless you want to fly in prebuilt skyscrapers from Asia). And so what if we don't make the same number of textiles we used to? Conusumers get better goods, cheaper; allowing them to better spend their money. And those people who might have grown up to work in textile mills? Well now they have OTHER service jobs, or... (horror of horrors...) they became Doctors, Lawyers, Programmers, Engineers, and other educated people.

      We can't hold back our development because a few people might lose their jobs. If you want to do that personally, that's fine, just don't force it on the rest of us.

      Do you still seek out full-service gas stations so you can do your part to prevent gas attendants from losing their jobs? When was the last time you hired a chimney sweep, or someone to muck out your stables?

      When you take away people's jobs, they have two options. Find a new job, or become homeless. Since there are millions of homeless people clogging our streets because the jobs of yester-year don't exist, I'm going to guess most people did the first.

      Save the $8, spend it on new fighters developed by Boeing, lunches at McDonald's, and Ford police cruizeres.

      --
      Comment forecast: Bits of genius surrounded by a sea of mediocrity.
    5. Re:I don't care, buy it cheap! by Anonymous Coward · · Score: 2, Interesting

      All I can really say is: STFU and work for less! Your argument is totally BS. So what if US workers lose a few jobs? The same amount of goods (actually likely more) have been produced for less money and people in other countries now have jobs. The end result is, no jobs are lost to the world (likely more are created), and consumers get goods for less. Please get it through your head that Americans are overpaid! Just because you guys are finally being forced to start working for your money you start getting all bitchy. Either compete, or go die because the rest of the world doesn't want your whiny ass here. People really have to stop thinking in terms of countries and think in terms of the World because, guess what? You may be a citizen of the US, but you are living in the World with the rest of us and you have to think in terms of world welfare, not country welfare!

    6. Re:I don't care, buy it cheap! by Monkelectric · · Score: 5, Interesting
      And Wal-Mart exists because it passes its healthcare on to the local state's tax-supported public services

      I worked at walmart for a while after college -- The people there were just miserable, and I dont mean shitty people, actualy most of the people were pretty nice, it was just like being on the ship of the damned. The smarter among us knew where the ship was headed, the less aware didn't. And the undertext was always, dont tell anyone. Management was stupid, but they could spot the smart people -- who didn't generally last long. I got along by pretending to be not stupid, but not smart either. They want someone just smart enough to stock their shoes, electronics, etc, and not be trouble -- but stupid enough to believe their lies. They lied constantly, did rotten (and sometimes illegal) things, and just generally made your life shit. The guys who had been there for 15 years, were worn to the nub by life. I was originally thinking of trying to become the store manager or something -- I was *BY FAR* the most educated employee with a BS, but after a while my conscience started to bother me. I *literally* felt by working at this company I was selling out myself, the country, and my own interests.

      I quit after a few months when they decided to make me permanant... my back was hurting so bad from the labor that I couldn't sleep more then 3 hours at once (i'd wake up with knotted muscles, have to stretch for 20 - 30 mins, then go back to sleep) And it wasn't like I could afford the walmart insurance, which IIRC was about 30% of your wage (7$ an hour).

      The other thing that struck me (coming from a household that made over 200k a year) was how poor the people working there were. I remember one girl bragging abuot how well she was doing -- she had a dvd player and a ps2.

      --

      Religion is a gateway psychosis. -- Dave Foley

    7. Re:I don't care, buy it cheap! by bnenning · · Score: 2, Interesting

      Wow. I really wish basic economics were a required subject in school.

      Buying $8 American means helping the defeceit, not having to pay $6 social secuity to the American who got layed off because of China. Buying $8 American means the government gets back a certain amount in Taxes from the American workers.

      Yet another broken window fallacy, because you've now paid $8 for $2 worth of stuff, reducing your wealth by $6. You are effectively advocating charity for US businesses that can't compete in the global market. It's equivalent to buying the Chinese product for $2 and then just paying $6 for the US worker to do nothing. Better idea: encourage the US company and workers to either become more efficient, or find another business. Neither wealth nor jobs is a fixed quantity, and the economy is not a zero-sum game.

      People here with this "buy from China" attitude are blissfully unaware that for every $ going overseas it costs us another 10 here to keep america going.

      Not remotely true. Free trade benefits both parties; there is a mountain of theoretical and historical evidence to support this. You want to see what happens when a nation cuts itself off from world trade, go take a look at North Korea. There's a plausible case that the US shouldn't buy Chinese goods because the Chinese government is hostile. There's not a plausible case that it's bad for our economy.

      --
      How to solve most of our problems: 1.Lots of nuclear plants. 2.Cure aging.
    8. Re:I don't care, buy it cheap! by bnenning · · Score: 5, Insightful

      The other thing that struck me (coming from a household that made over 200k a year) was how poor the people working there were. I remember one girl bragging abuot how well she was doing -- she had a dvd player and a ps2.

      Which makes her richer than 95% of the world's population. Poverty is relative; as long as there are any differences in wealth, there will be people near the bottom. But the bottom in the US and other developed nations is far higher than the rest of the world, and far higher than it was anywhere 100 years ago. You can thank capitalism for that.

      --
      How to solve most of our problems: 1.Lots of nuclear plants. 2.Cure aging.
    9. Re:I don't care, buy it cheap! by Shajenko42 · · Score: 2, Insightful

      True, at least the homeless have heating vents to sleep on, and the trash usually has some amount of food.

      Unless of course you thought that even the poorest Americans could afford to rent an apartment and had some kind of job.

    10. Re:I don't care, buy it cheap! by WIAKywbfatw · · Score: 2, Insightful

      AReally, I think you overestimate the affluence and disposable incomes of most working class Americans on minimum wage. That someone can be busting a gut doing a full-time job and barely have more to show for it than a couple of hundred dollars worth of stuff really isn't anything to be sticking your chest out with patriotic pride.

      It's a shortcoming of capitalism that those do most of the donkey work get the fewest rewards, and not a positive feature, as you seem to suggest.

      --

      "Accept that some days you are the pigeon, and some days you are the statue." - David Brent, Wernham Hogg
    11. Re:I don't care, buy it cheap! by santeri · · Score: 2, Insightful

      But the bottom in the US and other developed nations is far higher than the rest of the world, and far higher than it was anywhere 100 years ago. You can thank capitalism for that.

      Not capitalism, but it's side kick/comrade - the global workers' rights movement. That is, trade unions which incidentally are disapproved in both Wal-Mart and the third world.

      --
      ______________
      OTTERS RULE.
  13. Tariffs are an answer. by CrazyJim1 · · Score: 2, Insightful

    Instead of 'BUYING AMERICAN', you should focus on the core problem: Industries leaving the US.

    When an industry is completely wiped out in America because of overseas tactical price gouging, one should take a hard look at Tariffs. Sure, maybe 100% of your industry shouldn't be conserved because some may not be efficient, but shouldn't you conserve at least 10% of your industry like you conserve an endangered species?

    When you lose all your industry, then you're presented with the problem that the overseas people can overcharge you due to monopolistic power. But if you charge tariffs and protect weak, domestic industry then they can never get to the point to overcharge you. Indeed you actually make money for your own government on the imported goods.

  14. Re:bad idea. by Anonymous Coward · · Score: 2, Funny

    Well I've been to india and in the police office they are not aloud to use non-indian stuff.

    True, they are not aloud.

    They are very quiet about it.

    Don't tell anyone.

  15. Hilarious! by cliffiecee · · Score: 3, Insightful

    Either by corporate globalization (searching for cheap labor) or "not in my backyard" syndrome, we've moved most major manufacturing out of this country (or we let it go).

    And now some showoff congressman is demanding DHS 'buy American.' (Do we still make stuff here?)

    What kind of hilarity can ensue? Let's see:

    - corporations will move a few employees around to meet the claim of 'made in America'

    - countries who make our products get pissed 'cause we're threatening their income- trade sanctions, sabre rattling, etc.

    - exceptions will be made for certain countries with attendant political maneuvering. End result: almost every country will be on the exceptions list. Except the axis o' evil / 'terra' nations.

  16. Oil by HermanAB · · Score: 4, Funny

    Guess they'll go cold this winter - no oil and gas from Canada for Homeland Security...

    --
    Oh well, what the hell...
  17. Why buy american? by quickbasicguru · · Score: 2, Interesting

    With the way that America is today, anything like this would end up as a flop. We like things cheap and fast, and this would makes things expensive and slow....

    I see no way that this would help our 'security'. I think the last thing we need is our goverment to spend time and resources comming up with this, when they could be doing something more useful.

  18. What's a "component"? by 91degrees · · Score: 2, Interesting

    I mean, if components are assembled in the US from 100% imported subcomponents, does that make them foreign components or US made components.

    For example, every chip on a motherboard could be made in Taiwan, but if the board itself is put together in the US then who made it?

    1. Re:What's a "component"? by Anonymous Coward · · Score: 2, Interesting

      Here's how it's done. You import the entire device ready-manufactured, from Taiwan, with no firmware. It is therefore non-functional, and can be imported as a "subassembly" at a notional parts value. You then flash the firmware in, suddenly *voila* you have a fully functional "locally-manufactured" device, created from "US-made" software, and foreign raw components. (Oh, and the software is "US-made" in the sense that you made a copy in the US when you flashed the ROM; it was _actually written_ in India, of course).

  19. Re:Department of Homeland Gestapo by justforaday · · Score: 2, Insightful

    Their agendas aren't hidden at all...

    --
    I'll turn into a supernova and burn up everything. Well I'll turn into a black little hole and you'll turn into string.
  20. What's a "component"? by Vellmont · · Score: 3, Insightful

    What counts as a "component"? If I sell a computer with all the screws made in the US, but everything else made somewhere else does each screw count as a component? If so that's an easy one to solve.. 20 screws, 10 other components, 66% "American Made". What if the hard drive has American transitors in it, does that count? How about if all the steel in the screws was "american" steel, but they were produced in China, are they American screws or Chinese screws? How about the Intel processor that was designed by American engineers by an American company, but produces in say Malasia?

    The whole idea sounds rather stupid and vague in these modern times where everything has multiple sources. You don't even go into the whole political thing of "buying American" to see how silly the whole thing is.

    --
    AccountKiller
  21. Re:Department of Homeland Gestapo by Anonymous Coward · · Score: 4, Funny

    Dear Quoran,

    I know how you feel.

    Sincerely,

    US Constitution

  22. NIH by Johnny+Mnemonic · · Score: 4, Informative

    I work for a department of the NIH--the National Institute of Health. I have been closely associated with some large computer purchases, and I can tell you that, over a certain dollar amount, we must also source from US manufacturing plants.

    The details of how this works aren't 100% clear to me--but I believe that major manufacturers have a manufacturing plant for just this purpose, although I don't know if they serve any other gov't institutes besides the NIH.

    I can tell you that we can purchase Dell, Apple, and HP following the US sourcing rules. While it does indeed complicate the bidding process, it's not impossible. I would imagine that the DHS would tap the same resources; in fact, their use of these resources might drive down the prices for all gov't buyers who are currently constrained by this rule. The more the merrier.

    The fact that you can't purchase "Made in the USA" computer goods at Best Buy really has no relation to the purchasing power of the US gov't.

    --

    --
    $tar -xvf .sig.tar
  23. Huh... by Shamashmuddamiq · · Score: 2, Insightful
    That's strange, considering that the City of Indianapolis (and a lot of other cities, I assume) has a rule that preference is given to minority-owned businesses. My wife, who works on a project for the city, walks right past several reputable downtown businesses (when she needs something published or copied) in order to be serviced rudely, slowly, and incompetantly by a half-baked, mostly illegal-immigrant non-English speaking, minority-owned business.

    These policies are just stupid. Apparently, all problems can be fixed through legislation. I like what Thoreau said in his Civil Disobedience paper: "Trade and commerce, if they were not made of India-rubber, would never manage to bounce over obstacles which legislators are continually putting in their way; and if one were to judge these men wholly by the effects of their actions and not partly by their intentions, they would deserve to be classed and punished with those mischevious persons who put obstructions on the railroads."

    --
    ...just my 2 gil.
    1. Re:Huh... by brainhum · · Score: 4, Insightful

      What a load of crap and overgeneralizations. Government programs giving work to minority owned businesses are doing so to stimulate the economy, usually in ghettos where there is no cash flowing. The end result is a net increase of tax paying middle class people (who may be non-white) and all the benefits that go along with being affluent. Your painting of all minority owned businesses as incompetent borders on racist.

  24. A poor band aid... by szlab · · Score: 2, Insightful

    As something that would hinder the DHS's ability to function, I'd support it. On another note, though. If this is an attempt to protect US industries, then it really is a desperate measure. Propping up a dead (or dying) horse only works for so long.

  25. Who labelled this flamebait? by drunkahol · · Score: 3, Insightful

    It's bloody true!

    Any country (my own included - UK) which imposes virtually ANY form of trade sanctions, does so to protect their over-priced home produce. This perpetuates global poverty by preventing someone from competing against you.

    This is a bizarre twist on trade sanctions - I'll give you that. But to demand that a certain percentage of a product is manufactured in your own country just smacks too much of trade protection.

    For security? Give me a break. . .

  26. As a taxpayer by Bender0x7D1 · · Score: 5, Insightful
    While I think that the 50% threshold is unreachable, I don't think that the overall aim of this measure is so bad.

    Since the government buys their equipment using money from the US taxpayers, it seems in the best interests of the taxpayers and the country to keep as much of that money in the country as possible. Consider the following:

    The US government outsources everything to companies in other countries - everything from highway construction to phone support to the IRS. Making up a number for the tax rate, call it 40%, that people pay, including the federal taxes in gas, phone service, licensing, income taxes, etc. This means that every year 40% of the countries GDP goes to another country or countries. That reduces the overall "value" of our country by that much. At the other end, if we pay nothing to other countries for services or aid or anything, the "value" of the country remains the same.

    Now, I understand that this isn't realistic economically, but it illustrates the point. As a government, isn't it better for their citizens if as much of their expenditures as possible remain in the country? Yes, it is possible that buying from an outside source is cheaper, (for the nation as a whole), than buying locally. (For example, many food crops won't grow in the US and to irrigate/climate control the fields to support those crops would cost more than buying them outright from somewhere else.) However, for a few percentage points difference in the price, I doubt it, since we have to consider income taxes that the country "gets back" by taxing the workers who produce it. (Assuming all other aspects are equal.)

    With that said, I think it would be better overall to embrace a true global economy, so if someone in India can do a job better/faster/cheaper then they can do it. However, since we don't have a world government, and we still have this annoying habit of killing each other over things like imaginary lines on a map, I don't see any real alternative to being somewhat protective of the country you happen to reside in, whether that is the US, the UK, China or India.
    --
    Reading code is like reading the dictionary - you have to read half of it before you can go back and understand it.
    1. Re:As a taxpayer by cahiha · · Score: 3, Insightful

      The US government outsources everything to companies in other countries - everything from highway construction to phone support to the IRS. Making up a number for the tax rate, call it 40%, that people pay, including the federal taxes in gas, phone service, licensing, income taxes, etc. This means that every year 40% of the countries GDP goes to another country or countries. That reduces the overall "value" of our country by that much. At the other end, if we pay nothing to other countries for services or aid or anything, the "value" of the country remains the same.

      The "value" of a country is largely independent of how much of its own currency it sends elsewhere. If people have no interest in buying anything in a country or produced in that country, its value is zero. If the country sends a lot of its currency abroad, its currency will just get devalued accordingly.

      The US is a bit special: because the US dollar has been used in the trade between other nations, it can't just get devalued arbitrarily. That has allowed the US to keep printing money and to keep producing goods uncompetitively with fewer consequences than other nations. But that won't work forever: people are switching to other currencies. You already see a little bit of a drop in the dollar as a consequence, but it still has a lot further to go; and its artificial stability right now may result in a sudden and catastrophic drop down the road.

  27. What about oxygen? by jd · · Score: 2, Insightful
    Most of that comes from the Amazon, blue/green algae in international waters or overseas, ...


    Their car-pool is going to be awfully empty, after they get rid of the Mercedes, Ferraris, Audis, Jaguars, ...

    --
    It's a small world and it smells funny; I'd buy another if it wasn't for the money; Take back what I paid (SoM)
  28. Cell phone that's 50% American by davidwr · · Score: 5, Interesting

    American Cell Phone Company buys cell phone part pre-assembled from China for $20 and battery from Korea for $10, then does final assembly here and charges $61 wholesale to the gov't.

    By value, it's over half American-made.

    If 51% mass is the problem, bundle it with an American-made car battery and charging device.

    You may think this is funny but crazy rules call for crazy workarounds.

    --
    Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
    1. Re:Cell phone that's 50% American by whitis · · Score: 2, Insightful

      American Cell Phone Company buys cell phone part pre-assembled from China for $20 and battery from Korea for $10, then does final assembly here and charges $61 wholesale to the gov't.

      Actually, you are pretty close although you are looking at cell phone prices after rebates. More likely scenario: Halliburton buys a cell phone for $200 from nokia, sanyo, erickson, etc. Then they add a US manufactured Halliburton label and charge the govenment $500. Now it is 60% US made on a value added basis. Or maybe they add one of those totally ineffective US made battery booster labels. If they want to be a little less blatent, they pay to have a custom plastic case with a metal ALISA clip (instead of the plastic clips that break once a month) molded and claim the higher cost is due to the phone being military/law enforcement spec and customized. Or they pay a machine shop to machine the case out of magnesium and charge the government $1000. Or, perhaps they need shoe phones in the fight against shoe bombers.

      Also, while it is very difficult to make a device that has 50% of semiconductors made in the US (even though there are 133 semiconductor fabs in the US), you can still can get bare circuit boards made in the US and have assembly done in the US. It will cost more but driving up the US cost significatly while slightly lowering the foreign cost helps you satisfy the US requirement. It is even getting harder to know where chips are manufactured. None of the semiconductors on the last two boards I designed are labeled as to their country of origin, due to the small size of the surface mount parts.

      One thing that does make it more feasabile to use 50% US made components is the fact that those parts which are made in the US are the more expensive parts. $0.14 logic gate chips are made outside the US but many high end CPUs, Memory, and possibly FPGAs are made in the US. Embedded CPUs are probably mostly foreign made but if you slap a Pentium 4 in your cell phone (and a car battery to power it) you could meet the US made critera. Or add an FPGA based encryption chip to the phone.

      Almost all of these more complicated approaches actually would boost the local economy so they will probably go with the $300 Halliburton label since in contributes nothing to the actual economy but lines the pockets of corrupt corporations and goverment employees.

  29. No flame intended, but it raises the question... by Lisandro · · Score: 3, Insightful

    ... "why?". The world's becoming globalized - you can argue over and over if this a good or bad thing, but it's the way it is. I also have to wonder how many electronic devices are manufactured in the USA today. Yes, even USA companies have their products built elsewhere. Thanks to that you can buy your computers, consmer and electronic gadgets at the price you pay for them now.

    Is there a real motive for such a decision or it's just a "Geee, we're 100% american!" sort of thing?

  30. Re:for security, it is a must by OrangeSpyderMan · · Score: 2, Insightful

    And therefore it's vitally important that FIFTY PERCENT of everything is made in the US? This makes no sense whatsoever.

    Agreed - I could come up with something that is 99% made in the US except for the chip that transmits keystrokes to North Korea. This is just an attempt to pass legislation that the WTO souldn't like by disguising it as security...

    --
    Try NetBSD... safe,straightforward,useful.
  31. they could use macs by mAIsE · · Score: 2, Interesting

    Macs are manufactured in california for the different government boddies that require made in america.

  32. Re:bad idea. by Lisandro · · Score: 3, Insightful

    This forced nationalism is strikingly similar to the conditions in pre-WWI Germnay as well. Which is something to think about.

  33. Cisco Routers? by bayerwerke · · Score: 2, Informative

    The three in the rack across the hall from me are from Mexico.

  34. Apple Computer used to be by davidwr · · Score: 2, Interesting

    Apple's original Macintosh motherboards were made in the USA and the units were assembled here. Not sure where the components were made. Don't know about today's Macs, but someone else mentioned XServes are made in USA.

    With any manufacturing process, "made in" is only meaningful on a step-by-step basis. Frequently, commodity parts may be multiply-sourced so one lot of, say, a power supply, may contain an XYZ capacitor from country A and another may contain an equivalent capacitor from country B.

    --
    Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
  35. Re:bad idea. by jaydonnell · · Score: 5, Insightful

    I think you and everyone else have missed a major point. What happens if the devices our military depends on are not developed and made in america? Two things:
    1. Our military won't be able to keep up with the technical advances of other countries because we no longer produce enough engineers and scientists. All the engineers will be overseas
    2. Our national defense will depend on foriegn companies selling us equipment which they may choose not to do at some point in time.

  36. It's all the fault of China's devalued currency by kt0157 · · Score: 2, Insightful

    I had a chat with an old farmer in New Zealand a few weeks ago. He was moaning about the high cost of New Zealand goods when trading with China due to the artificially low value of the Renmibi.

    Well, duh! You think that communists are going to play by free market rules? How stupid can you get. We let China do this because we want cheap goods. But one day when we don't have indigenous industries the currency will be re-valued and the goods will have to be bought at their true prices. Look out for inflation, rising interest rates, a collapsing bond market, stocks taking a dive.

    It's the Chinese seeking to overthrow capitalism from within. So much more effective than using an expensive military solution. And this way, the US doesn't see itself as under attack.

    You've got to admire the plan, you really do.

  37. Re:And the penalty would be? by RandomJoe · · Score: 4, Insightful

    If it's like DOD / Corps of Engineers contracts, the penalty is you don't get paid. When we do a Corps job, it states in the specifications you must meet the "Buy American" act. If I install foreign-made items, I have to either produce documentation confirming that the vendor is on the "exceptions" list the DOD has (which won't work for this case) or I have to replace the items.

    Otherwise, the Corps won't sign off on the job and we don't get paid.

  38. How does this differ from China... by dominator · · Score: 4, Insightful
    Just four days ago, /. ran a story about how China's government was only going to buy Chinese software. The +5 comments in that story tend toward this sentiment:
    • China has a much more paranoid outlook. Good for them.
    • Makes perfect sense for a variety of reasons to do this.
    • ...

    In this thread, we the +5's tend toward denouncing the US's choice to effectively do the same thing. Is there some method to the madness? I'm genuinely curious...
  39. Well that narrows the list of authorized down to.. by Datamonstar · · Score: 2, Funny

    apple pie

    --
    The eternal struggle of good vs. evil begins within one's self.
  40. Side Effects by Morosoph · · Score: 4, Insightful
    This ruling must have side-effects. The easiest way for the US to meet its '50% local' requirements is to fit any custom machines with expensive software, for example. The first casualty will be free software.

    This is not just bad for free software, but this is a clarifying special case of why this requirement is in practice a subsidy. Things will be bought that are not required to do the job.

    In addition, it should be remembered that US dollars flow back to where they can be used as legal tender. Ie: the US. Buying goods from abroad initiates the whole process of trade. But then economic and scientific illiteracy are patriotic: Americans live in a post-rational culture AFAICT.

    1. Re:Side Effects by JohnsonWax · · Score: 2, Funny

      Well, I can see Dell introducing a new line of computers with cases large enough to preload a Gibson guitar, or perhaps a 399 piece Craftsman socket set.

      Too bad my Powermatic saw was one of the last of their products made in the US - an Apple PowerMac G5 with integrated 13" surface planer could be dang handy...

  41. Oh, attention will be paid by smittyoneeach · · Score: 3, Insightful

    Eventually, some bureucratic fig-leaf will emerge, e.g. the Puzzle Palace's waivers for 20+ countries.
    OTOH, what sort of remark is it concerning the US that it is simply not cost-effective to make anything here anymore?
    I'll try to be positive, and avoid the flamebait flogging of last week by saying: demonstrate some US-designed and built products (that don't suck), and I'll happily buy. For a company with the right marketing, it's a good opportunity.

    --
    Get thee glass eyes, and, like a scurvy politician, seem to see things thou dost not.--King Lear
  42. oddly enough... by CarrionBird · · Score: 4, Insightful

    ...the US-House of Saud relationship was cemented by FDR and continued by his successors both D and R. Apparanty few realize that.

    --
    Free Mac Mini Yeah, it's
    1. Re:oddly enough... by JoeBuck · · Score: 4, Insightful

      Perhaps. But the nickname of the long-time Saudi ambassador to the US is not "Bandar Clinton", but "Bandar Bush", reflecting his longtime personal relationship to the Bush family. There's no question as to which party the Saudis prefer doing business with.

  43. Something I just have to rant about by Glowing+Fish · · Score: 3, Interesting

    I am not the first person to point out here that very few electronics are made in America anymore. But I would like to point out that many people in America don't understand this, and that it is kind of counterintuitive and that various otherwise intelligent people's inability to understand this is causing some bad economic mistakes to be made all along the line.
    I was born in 1979. I still remember when items like televisions, VCRs, Microwaves and the like were luxury items. For people born earlier, especially in the depression, the idea that goods like these often are literally not worth the space it takes to store them. Many people don't understand that televisions and stereos are mass produced in countries like Taiwan that 20 years ago were third world countries, and that Japan is past us in technology, Taiwan is pulling even, and countries like Malaysia are waiting to catch up.
    The micro and macro effects of these are causing big ripples in our economy. If the pricing of housing goes up, and the price of consumer goods stays the same, what does that do? If you own an independent electronics retailer, and you sell televisions and stereos at 100 dollars each with a 10 dollar profit, how many do you have to sell to afford a standard 300,000 family home?
    And, if the US is running a 60 billion dollar a month trade deficit, what is it going to sell to make up for that? Heavy manufactring used to be our bread and butter, but we would have to export (for example), 600 million tons of steel a month to make up that deficit. Pretty much the only thing the US has a clear edge in manufactring these days is commercial aircraft. But the people who are making economic policy don't realize this just because it contradicts their experience when they were growing up.
    Okay. I have had my say.

    --
    Hopefully I didn't put any [] around my words.
  44. Tariffs are not and have never been the answer. by Skippy_kangaroo · · Score: 2, Insightful
    Speaking as an economist I can tell you that the only thing that tariffs do in the long run is make you pay more for things than they are really worth. Maybe enrich a few politically connected companies. But that's it.

    Consider the sugar tariffs you have in place in America becuase of your ideological objections to Cuba's existence. The result is that sugar is hugely expensive in the US. Thus, US sugar farmers (actually concentrated in a few wealthy corporations that make extensive political donations) make bucketloads of money at the expense of the ordinary US consumer. Furthermore, to avoid the sugar tarifs, most confectioners use high fructose corn syrup which is the closest thing to sugar they can find that does not get hit with the tariff. Frankly it tastes awful if you compare it with real sugar. Thus, as a result of the sugar tariffs, the US has higher prices for sugar than anywhere else in the world, has confectionary and soft drinks made with HFCS which taste awful, and enriches a few politically connected corporations as a result of it.

    Now, dumping. Why should I object if someone wants to sell me something below cost? Normally you call that a bargain. If you manage to find a hard-drive below cost you would be crowing about it here. But do that in international trade an somehow its bad? Ooh, that's dumping, that's evil? You seem to presume that when you loose your, lets say, sugar industry you will be overcharged by that overseas monopoly. I hate to break it to you, but there is more to the world than "The US" and "The Rest". If you lost your domestic sugar industry you could buy sugar on the world market from any of a number of countries. Dumping is more the result of intense competition than monopoly.

    Any questions?

  45. Bad bad signal by rcastro0 · · Score: 2, Insightful

    This to me sends a bad signal: The DHS may be institucionalizing itself as a pillar of xenophobia in the US of A, and it is trying to reach well beyond its original role.

    I see a potential vicious circle in the build, with DHS attracting more and more xenophobe weirdos, through publicity around acts like this, and thus becoming more and more extreme in its views. This is not going to help world peace the least, such a nationalistic movement popping up in the heart of the last remaining super power. Pity.

    --
    Quem a paca cara compra, paca cara pagará.
  46. Re:That, and we're feeding a good chunk of the wor by henni16 · · Score: 2, Insightful

    it aint nukes keeping China off our backs, we could stave them out long before they'd win any war.

    To whom it may apply:
    People, please remember the above sentence the next time you complain about agricultural protectionism
    by other nations or their reluctance to use genetically modified&patented seeds.
    To ensure future independance from foreign nations for food supply is a very good reason for a nation to
    use subventions or agricultural tariffs to protect its farmers.

  47. "made" vs. "assembled" by Thu25245 · · Score: 2, Informative

    Even those products stamped "Made in USA" may not meet the DHS criteria.

    For example, most (all?) Dell desktops are assembled in the US. Dell maintains factories here, whith US workers to put together the "custom-configured" hardware they're so famous for. (Dell laptops come from overseas like everyone else's.)

    The components they assemble, of course, are all from overseas. The cases, motherboards, drives, memory, power supplies...almost always imported. The criteria in the bill specifies >50% domestic components, so they don't qualify.

  48. Your post makes one clear point by tsmithnj · · Score: 4, Funny

    ...that you hold quite a few degrees in BS.

  49. Devil's advocate by CrkHead · · Score: 2, Insightful
    It could be argued that part of "Homeland Security" is the ability for us to aquire needed products in times of unrest. This (and similar laws) could be used to require a domestic manufacturing base so we can survive without international support.

    When China makes moves to regain control of Taiwan, we have sworn to protect Taiwan. If we uphold that commitment, will we be able to survive without Chinese goods?

    I do not support in protectionist laws, on the same note I do not support in a foreign policy that creates enemies. Unfortunately, we are creating enemies as a record pace and that is likely to come to a head and we will have to deal with the fall out.

    "Buy American" laws may be the most intellegent thing to have happened here for some time.

  50. Harris Miller, head of the ITAA : can't trust him. by Anonymous Coward · · Score: 2, Insightful

    from http://www.ginaminks.com/blog/200312-index.html ...let's review his resume:

    * Current President of ITAA, the IT Association of America. He speaks in this position to congress for any issue dealing with IT. It was he who cried we did not have enough IT workers in the 90s, even as older IT workers were being laid off in droves so that companies could hire cheaper, younger labor. He has close ties to NASSCOM, and promotes outsourcing as well as raising the cap on temporary visas (it appears we are once again having a *coughcough* labor shortage *coughcough*.
    * Current President of the World Information Technology and Services Alliance. This group is a "is a consortium of 53 information technology (IT) industry associations from economies around the world". They believe in open markets.
    * Member of the Board of Directors for ITT Educational Services . This company provides post-seconday degrees in high tech disciplines (hmmmm conflict of interest anyone???)
    * Member of Virginia Research and Technology Advisory Commission. This group's mission is to advise Virginia's Governor "on appropriate research and technology strategies for the Commonwealth with emphasis on policy recommendations that will enhance the global competitive advantage of both research institutions and technology-based commercial endeavors within the Commonwealth."
    * Formally, he worked for Immigration Services Associates, a DC government relations firm that specialized in immigration issues
    * Was the Government Relations Director for Frogomen, Del REy & Bernsen, P.C (an immigration law firm).
    * Ran his own gov't consulting firm, Harris Miller & Associates.
    * legislative director to Senator John A. Durkin (D-N.H.)
    * deputy director for congressional relations in the Office of Personnel Management
    * legislative assistant for the Subcommittee on Immigration, Refugees, and International Law on the House Committee on the Judiciary
    * Education: undergrad (degree not specified) University of Pittsburgh, grad (degree not specified) Yale.

    So how are the agricultural workers linked to Miller? According to Norm Matcloff's research, Miller proudly told The New Republic back in 1987:

    ``I believe in interest groups and the right of interest groups to be represented, and if I can represent them on the Hill, well, I will do it,'' says Harris Miller, a former aide to Kentucky Democrat Romano Mazzoli's House Judiciary subcommittee on immigration who now has his own lobbying firm. Miller's first big client was the National Council of Agricultural Employers, a group of large growers who use migrant and illegal alien workers.

    (again, can you say *conflict of interest*?)

    Miller used a certain policy tactic to help his agriculural clients back then, and now he has "moved up the value chain" to help his business clients gain control of the IT labor force. Here is how it worked with agriculture:

    1. Industry associations flood the media with reports of acute labor shortages
    2. Worker advocates argue that no shortage exists, but they're ignored
    3. Legislation to create new temporary visa program passes. Provision built into the legislation to create a national database to search for qualified American applicants.
    4. Farm worker wages decrease dramatically
    5. Guestworkers are abused, treated as indentured servants

    sound familiar??

    It should.....

    1. Industry associations flood the media with reports of acute labor shortages
    2. Worker advocates argue that no shortage exists, but they're ignored
    3. Legislation to create new temporary visa program passes.
    4. IT wages decrease dramatically
    5. Guestworkers are abused, treated as indentured servants

    What will it take for someone to stop this cycle? What careers are next for this elimination program?

  51. Duh--it's **software**. by Danuvius · · Score: 2, Insightful
    Just four days ago, /. ran a story about how China's government was only going to buy Chinese software. The +5 comments in that story tend toward this sentiment:
    • China has a much more paranoid outlook. Good for them.
    • China has a much more paranoid outlook. Good for them.
    • ...

    In this thread, we the +5's tend toward denouncing the US's choice to effectively do the same thing. Is there some method to the madness? I'm genuinely curious...


    Thanks to GPL software, China can easily achieve their stated goal.

    The US however, as stated by legions of slashdotters, does not make much anymore and therefore will find it difficult or impossible to achieve its stated goal.

    Is this not fairly obvious?
    --
    Akarsz Magyar Gentoo fórumot? Akkor
  52. No such thing as guaranteed employment by Infonaut · · Score: 2, Insightful
    And that will qualify me to go anywhere I damn well please and earn a good living

    Sitting at an oak table? You might want to knock on that wood. A set of degrees is just one part of your resume. Once you take that first job after you get your fourth degree, you'll be on a career path, which will determine far more than your educational background after a few short years.

    I'm also surprised that you are thinking of your future based solely on what you consider to be better job opportunities in Asia. The cultural differences are, as I'm sure you know, rather stark. I would also be very interested to see if all of those humanities degrees amount to anything in societies that seemingly value technical capabilities far more than humanities education.

    Regardless, I hope your prediction is true, but I would look on the degrees as a foot in the door, not as a ticket to the good life.

    --
    Read the EFF's Fair Use FAQ
  53. your point being what? by cahiha · · Score: 4, Insightful

    This isn't a partisan issue. I don't know whether the US-Saud relationship was politically wise under FDR given what they knew back then and given what the world was like back then. What I do know is that over the last 20 years, it has become increasingly clear that it is incompatible with US claims of advancing democracy and freedom around the world.

    If the current president still doesn't know that continuing the US-Saudi relationship on these terms is a mistake, he is either stupid, or has a financial interest in the relationship that keeps him from doing the right thing, or both.

    1. Re:your point being what? by torpor · · Score: 2, Insightful

      What I do know is that over the last 20 years, it has become increasingly clear that it is incompatible with US claims of advancing democracy and freedom around the world.


      umm.. there's plenty of democracy and freedom in the world that is not a result of American military aggression.

      its the American desire to push people around, just because you've got the bigger stick, thats not compatible with the current world view. Americans' meddle too often!!

      --
      ; -- the corruption of government starts with its secrets. a truly free people keep no secrets. --
    2. Re:your point being what? by MartinB · · Score: 2, Informative
      there's plenty of democracy and freedom in the world that is not a result of American military aggression.

      And plenty of democracy and freedom in the world despite American intervention. And even more that didn't survive 'the advancement of democracy and freedom' via Military Advisor. Chile, 1973, for example? Or Nicaragua, 1984?

      --

      The only thing you can accurately describe as "Scotch" is a sticky tape made by 3M. And it's

  54. Whining? by Alioth · · Score: 2, Insightful

    There was lots of whining about the Chinese government was mandating Chinese software only for government use.

    How is this any different?

  55. *BZZT* Wrong by rcs1000 · · Score: 4, Informative

    Where did you get your economics degree? Perhaps you ought to consider asking for your money back.

    Here's is the shocker: China does not run a large trade surplus. (Serious, it's very very small, and was in '04 only slightly in the black.) Now, the numbers "experts" give you tell you that the US ran a $160bn trade deficit with China in the year to April '05. But that is against an overall trade surplus of just $26bn (which, trust me, isn't a lot of money when it comes to surpluses and deficits.)

    (For details on China's trade performance, check this http://www.uschina.org/statistics/2005tradeperform ance.html)

    But this is not relevent: China imports as much as it exports. It just happens not to import a lot from the US. It does however import a lot from Germany (which, along with Japan is the world's largest manufacturer of capital goods). So, China has a trade deficit with Germany, and a trade surplus with the US. Now: go to Germany. Who do they buy from? Well, lets start with the US. Germany imports a terrific amount of software and financial services from the US.

    So: money goes US -> China -> Germany -> US -> ...

    (Now, this isn't great if you work in the manufacturing sector in the US, and your job goes to China. But it is great if you're selling fund management products to the Germans.)

    Here's another shocker. Between 1998 and 2005, the US lost 2m manufacturing jobs (while, it should be noted, manufacturing output rose). And those jobs went to China, right? No. China lost 15m jobs. Yes, you heard that right fiftenn million manufacturing jobs were lost. (The result, I should add, of moving from an inefficient state system to a marginally more efficient private system.)

    Anyway: the point I make is a simple one. Focussing on bilateral trade surpluses or deficits is stupid. You have to look at the system. You also have to remember that those trade deficit/surplus numbers are vey bad at capturing so called "invisible" exports, such as financial services.

    Cheers,

    Robert

    --
    --- My dad's political betting
  56. Now, why does this story ring a bell? by Hosiah · · Score: 2, Interesting
    It resonates strongly with America's poor recent showing (17th) in Association for Computing Machinery's International Collegiate Programming Contest, reported and buzzed upon on this site last week or so.

    Also, didn't the story break a while back about China demanding that their computer suppliers "buy China" only? Funny thing is, I don't see them having a problem keeping up their commitmenmt.

  57. Real estate appreciation scam by whitis · · Score: 3, Informative

    I agree on your point on senseless real estate appreciation and have been making similar comments myself for years. Houses do not appreciate, they depreciate; the damn things fall apart. The land may, however, may appreciate in value if it is in a popular area (i.e. a city). I always thought that real estate appreciation was a scam concocted by real estate agents to offset their commissions. If every time you sold your house it sold for the same price that you bought it for, you would be out $10,000 in commissions. This would make you seriously look at why you are paying $10,000 for a (usually incompetent) agent. Fortunately, appraisals are done by real estate agents; often not the agent selling the house but a buddy. So, you jack up the appraisal of the house by at least the amount of the commissions so you don't pay too much attention to why you are paying five times as much for a real estate bimbo to sell your house as you would a surgeon for life saving surgery (the hospital will make up the difference, though). Did the seller do any remodelling or redecorating? Add the cost of that (plus some) to the appraisal as well. Never mind that they buyer will probably have to spend more money undoing the "improvements".

    These real estate idiots are way behind on using technology and actual information to sell houses. A few now offer panoramic camera views. A large number of people who buy houses do so in a different city than the one they now live in and those that live in the same city have better things to do with their time than shlep around to houses that could have been ruled out with a real estate bimbo who insists on showing houses during customers working hours. Hire some architecture students to draw up a decent floorplan/3D model of the house, take pictures that are linked so you can select any view of each room from the floorplan, and photograph, catalog, and test all ethernet, phone, cable tv, and electrical outlets including which circuit breaker they connect to. Real estate agent incompetence and the constant stream of disinterested potential buyers traipsing through also severely impacts the lives of people who live in rental property which is being sold to a new landlord. Give people decent virtual tours at their convenience and then let them visit the house only if it is really one of their top candidates.

    Besides making real estate agents among the top ten overpaid professions in America, housing is not affordable to those entering the housing market. When the baby boomers, who bought their first houses for realistic prices before appreciation ran amok under favorable loan terms, die off the bubble will have to burst.

    1. Re:Real estate appreciation scam by lowrydr310 · · Score: 3, Insightful
      I recently graduated and finally settled in an area where I would like to buy a home. Unfortunately for me I'm 25 miles outside New York City where real estate isn't exactly cheap at the moment.

      I'm not very familiar with economics, but I think that another reason for overpriced housing is the fact that banks have virtually no restrictions on who they're lending to. My understanding has been that you need at least 10% of the purchase price for a downpayment, preferably 20%, and you need to have good credit to get a good interest rate. These days, ANYONE can get a loan with practically nothing down and still get a good interest rate regardless of your credit history.

      I don't have any of these issues - I have excellent credit and I can now afford a 20% downpayment on a house that was priced reasonably (a few years ago), but with today's housing prices that same amount I have for a downpayment is only about 5% of a house that isn't as nice.

      Can anyone with an economics background provide some insight? Will banks ever tighten up their lending standards, and if so would that help adjust prices to a more realistic level?

      I'm also concerned about these interest-only loans that people are getting. A friend of mine only owed about $100K on his house in California, but got it appraised recently for $350K so he took basically took out a second mortgage and bought himself a $70,000 car, a $40,000 car, took a bunch of expensive vacations, bought some big screen LCD TVs, and wasted his money on a bunch of other luxury goods. He's only paying the interest on the loan, which is about $1000 a month. I know he's not alone - MANY people throughout the USA are doing this. I know another guy who makes $40,000 a year and somehow managed to buy a $500,000 house. I simply can't understand how this is possible. Interest-only loans for the first few years are great, but what happens when you have to repay the principal?

      Again, a question for the economists: Will housing prices drop once these interest only loans expire and principal has to be repayed?

  58. Partisan by Mark_MF-WN · · Score: 3, Insightful

    Thanks for turning this into a partisan issue. Good job. The entire debate has been improved because of your ridiculous attempt to point out that another political party is just as pathetically corrupt as the one that is currently in power. I salute your blind political idolatry.

  59. Re:Strange - PCs, Dell should qualify by grozzie2 · · Score: 2, Insightful

    you are confusing 'made in america' with 'american companies manufacturing overseas'. Go take a good look at where the actual fabrication facilities are located, and you'll see that your chipset, cpu, and memory dont qualify.

  60. Damned if you do, Damned if you don't. by Firethorn · · Score: 3, Insightful

    I hear all sorts of people complaining that we're not doing enough!

    We go somewhere, people complain, we don't, they still complain.

    World politics are messy, but sometimes I think that invasion is the only way to clean somewhere up. I would have taken out Iraq better than 10 years ago.

    I figure that the only reason Bush used the WMD argument for going into Iraq was because that was what the Europeans would go for. I figure that we went in because it was a humanitarian nightmare, we had forces tied up just guarding the border, he was flaunting the sanctions, the oil for food program was a joke because of all the corruption, and Bush didn't want another Cuba hanging around for decades.

    I'll say this: 99.9% of the starvation in the world today is political in nature. And yes, I consider most war political in nature.

    --
    I don't read AC A human right
    1. Re:Damned if you do, Damned if you don't. by Mr.+Ghost · · Score: 2, Insightful

      100,000? Really? Can you point me to this statistic from a reputable source? Can you name one single government in the world that is actually beholden and listens to its people more?

      As a prior poster pointed out, the US is "damned if they do, damned if they don't" if they US does something they are bullies, if they US doesn't do something they are arrogant and uncaring.

      When the US has to deal with a bipolar world like that, where they never catch a break, why should they ever listen. Basically the despots around the world hate us but want our money and the more vocal EU nations (namely France and Germany) want us to be their lapdogs.

  61. I'm from Ireland. Bwah hah hah hah! by zoney_ie · · Score: 2, Interesting

    Speaking as one from the country that's the third largest recipient of US investment (Ireland), I say "HAH HAH"!

    Actually, our government may be bad at running our country in some ways, but they are sly devious conmen when it comes to business and attracting industry/multinationals to Ireland.

    After all, despite the massive US interest - they account for something like 20-25% of businesses in Ireland - although that's a lot, that means we've a lot more companies that aren't from the US! It also means we've an insane amount of outside investment overall!

    And our government continues the slyness by picking up on trends and getting the Chinese interested in setting up shop here (our entire local government for my area went over to China with representatives from practically every major business in the province, along with the Prime Minister! Largest trade delegation ever from Ireland). And we've had the Chinese premier in my little backwater city too.

    At some point Ireland may have to examine her ethics, but hey, all these people have money, so... Bwah hah hah.

    All the benefits of being in the EU without the sluggish economy and massive unemployment seriously rocks.

    Come to Ireland while you can. Just don't go to the insanely expensive Dublin - one of the highest cost-of-living places there is. Go to Cork or Limerick. Galway's nice but doesn't have so much industry.

    And due to unbalanced regional investment a two-hour car trip brings you to undisturbed quaint and beautiful real Irish countryside, with traditional lifestyles! (Yes, we nab a disproportional amount of tourists as well as all the industry. Nice one! Keep coming!)

    --
    -- *~()____) This message will self-destruct in 5 seconds...
  62. Re:Economic ignorance by dabigpaybackski · · Score: 2, Informative
    I'm not taking simultaneous opposing views at all. The only people who consistently benefit from tariffs are corrupt executives and corrupt politicians, regardless of their nationality.

    Forgive me if my arguments weren't well-structured. To clarify, I argued that tariffs harmed Chrysler by shielding them from real market competition, thereby making them uncompetitive when "foreign" manufacturers like Honda and Toyota chose to subvert the tariffs by moving their production closer to their intended market, that is, to the U.S. So U.S. tariffs are bad for American workers and the long-term health of their company, in this instance.

    Then, I said that the remaining (other) industries in the U.S. are at a disadvantage in the export market due to foriegn protectionism. To be sure, this is an unjust situation that should have been strenuously negotiated years ago among all parties, and to a state of affairs everybody could tolerate. Japan has been obtuse with the U.S. over imports, but India and China have been unrepentently protectionist. For their part, U.S. manufacturers saw dollar signs in the early 90's and shifted production to Mexico, then, when Mexican labor costs rose too high, to the Pacific Rim countries. The U.S. companies that weren't elite, high-end manufacturers like computers, defense, and aerospace, and chose not to relocate, have largely been bought out or driven to bankruptcy.

    So, what I was trying to make clear was that tariffs, both foreign and domestic, have been bad for the United States. Without hesitation and without meaningful public debate, U.S. politicians have in recent years entered into lopsided trading agreements that place U.S. industries in many categories at an insurmountable disadvantage. Simultaneously, our foreign partners have agreed to placate our insatiable consumption of their goods by extending us such infinite levels of credit that default and hyperinflation can be the only outcome. Given the grotesquely distorted balance of trade between the U.S. and it's exporter/creditors, I wonder if our economy is not intentionally being demolished by the global trading cartels, with the connivance of "American" politicians, in order to reestablish the U.S. along authoritarian lines (thing China) as a low-wage manufacturing center. Or a fiefdom, if you will.

    But to tie up this thread, which began as a discussion of the DHS "buy American" scheme, and it is a dastardly scheme in the cynical New Deal tradition, because it dangles a promise of increased job security for a lucky few in the manufacturing sector, be they lowly workers or well-connected elitists, in an effort to bolster the public image of a state security bureaucracy, that is, an agency intended to protect the people who own the factories from the people who work in the factories. It's like the Cheka launching a "Buy Soviet" campaign.

    --
    "OH SHIT, THERE'S A HORSE IN THE HOSPITAL!"