'Buy American' could be in stimulus
The slumping U.S. steel industry is likely to be a major beneficiary of Barack Obama's stimulus plan, which focuses on improving infrastructure. Some in the industry even want a "buy American" clause in the bill. Jeremy Hobson reports.
A steel worker (iStockPhoto)
More on The Economy, Jobs, Fed. Budget/Govt. Spending, America's Financial Crisis
TEXT OF STORY
Kai Ryssdal: It's not just members of Congress who are maneuvering their way around the stimulus bill. The private sector is doing it too. And they actually have a lot more to gain -- from cement to steel to catfishing, 2009 could be a lucrative year for American businesses, both large and small, if they can get a piece of the action. Marketplace's Jeremy Hobson has that part of the story.
Jeremy Hobson: Christmas may be over, but the biggest gift is yet to come in Washington.
Steve Ellis: If you're a lobbyist in this town and you're not trying to get part of a nearly trillion-dollar stimulus for your client, well shame on you.
Steve Ellis is with the government watchdog group Taxpayers for Common Sense.
Ellis: That's a huge chunk of change, and considering very little of it has been defined as to what exactly it's going to, to date, that's attracting a lot of attention.
Ellis says lobbyists from all sorts of industries are descending on the nation's capital, selling their services to members of Congress and the Obama transition team. Business Consultant Michael Locker says the steel industry will be a big winner since the stimulus package is likely to focus on infrastructure.
Michael Locker: Well, cement will gain a great deal, as you might imagine. Construction firms, engineering firms, but steel being used in those types of construction projects, yes, will be a major beneficiary.
Some in the steel industry are even pushing for a "buy American" clause to be inserted into the bill, to help domestic companies. Steel industry analyst Charles Bradford calls that hypocritical because American companies complain about protectionist policies abroad. And, Bradford says...
Charles Bradford: The same companies that have been asking for protection are the ones who just a few months ago were bragging about how profitable they were and were showing figures that they were twice as profitable as the average American company.
Still, he says, a "buy American" clause could well make it into the final bill, pleasing labor unions that worked hard for Democrats during the election.
In New York, I'm Jeremy Hobson for Marketplace.
Comments
Comment | Refresh
From Winston-Salem, NC, 01/02/2009
The disturbing part of this story is the economic illiteracy. Of course, we have to emphasize spending stimulus dollars in the US, just as we have to realize that every dollar we spend overseas serves to transfer wealth, and standard of living, to other countries.
Post a Comment: Please be civil, brief and relevant.
Email addresses are never displayed, but they are required to confirm your comments. All comments are moderated. Marketplace reserves the right to edit any comments on this site and to read them on the air if they are extra-interesting. Please read the Comment Guidelines before posting.
You must be 13 or over to submit information to American Public Media. The information entered into this form will not be used to send unsolicited email and will not be sold to a third party. For more information see Terms and Conditions and Privacy Policy.