At last someone states the obvious. ex-Clinton Labor Secretary Robert Reich wrote on his blog:
Whether it’s stimulus or bailout, policy makers must remember that American companies aren’t the same as American workers – and our first responsibility is to the latter.
I have felt like a lone drummer, pounding, over and over again that any government expenditures should be tied to U.S. citizens, U.S. workers. That's the whole point, to generate income, to stimulate through Keynesian economics. In Buy American, I pointed out how, due to global labor arbitrage and multinational corporations, very easily the United States could be stimulating it's trade deficit, other nation's GDP and not U.S. domestic income.
I am so glad a well respected economist has come out and stated the obvious. Now maybe, just maybe some other economists might come out with this common sense principle. Remember this is not private sector money, business as usual, it's massive, deficit spending for which the U.S. taxpayer is ultimately responsible for. It would be nice if U.S. workers were then the primary consideration or at least we were following the theory of stimulus spending.
Read Reich's whole post, he is focusing in on the auto companies but it applies really to any stimulative project. I also wrote up some details on GM's plan, which in my view is not putting U.S. workers or even the U.S. Market as it's focus.