On Tuesday, President Trump signed an executive order “Buy American, Hire American First”. While everyone may like the sound of this the reality is contractors can get materials and labor less expensive from foreign sources and that keeps tax dollars down. Creighton University Economist Ernie Goss says there is no assurance from Washington D.C. that steps are being taken to keep those taxes from going up.
Goss says, “Do we really want to turn over our economy to economists, lawyers and politicians looking over purchasing managers shoulders to see how they are buying effectively? Purchasing managers buy the the best product at the cheapest price, national security issues aside. Otherwise, buy the best at the best price.”
The attention last November was to create more jobs and keep companies from relocating to other countries. Goss says that will raise costs and slow the economy.
Goss says, “We need to be manufacturing science and technology products in Minneapolis and Omaha. We don’t need to bring back baseball manufacturing from Costa Rica and that is what we are essentially talking about. When politicians and economists collide, politicians usually win and that is what we are seeing here.”