U.S. Stimulus Bill Passes, ‘Buy American’ Rule Included
January 30th, 2009 at 11:24 am - by Giuseppe Burtini
The Democrat-controlled House passed President Obama’s $825 billion stimulus plan bill this Wednesday, marking what is likely the largest stimulus package in history.
The vote, which passed 244-188 is waiting for Senate approval, while Obama is making a lot of noise regarding the haste and importance as businesses and investors within the nation are “waiting on Washington” for “bold and swift” action to revive and rejuvenate a large economic collapse.
The bill includes approximately $550 billion in infrastructure and federal spending, while an additional $275 billion is created in tax cuts directed at individuals and businesses.
A group of economists responded to the bill with a request for more, suggesting that the problem would not be resolved without a significantly larger bill.
The Canadian Institute of Steel Construction responded to the bill quite negatively, a sentiment revered by Canadians and other nations dependent on U.S. trade worldwide - while expectations for the bill to increase imports from other countries are still strong, a number of groups are disappointed that the bill included a section which required all iron and steel used in the project to have been produced in the United States.
“None of the funds appropriated or otherwise made available by this act may be used for a project for the construction, alteration, maintenance, or repair of a public building or public work unless all of the iron and steel used in the project is produced in the United States,” said the bill.
The real effects of such a move are moot, as after the “first spending” of the money, the recipients of bailout money will be free to spend as desired - which will include an increase in Canadian imports and imports from around the world; a force which is certain to provide huge economic stimulus directly to these other countries, even as that is not the intention. But still, iron and steel workers who were expecting a direct stimulus to their own sales from outside of the United States are unimpressed.
It’s unclear if this language will remain in the bill when it passes President Obama’s desk to be finally signed in to law, after the Senate’s approval.
