https://youtube.googleapis.com/v/4FrGxO2Fn_M#action=share
The philosophy in this video leads to a decrepit economy, much like Greece's in the long run.
The problem is that if we focus our consumption on 'buying American', what we end up doing is paying more for less compared to the other option, of buying the 'quicker, better, cheaper, faster' good or service. The reason jobs left America is that business is in business to make a profit. They are responsible to the shareholders (amazingly, many of us are shareholders directly or indirectly via 401k's and 403b's) to return the best dividend, otherwise the shareholding investor will seek out better investment options with better returns. So the businesses find the 'quicker, better, cheaper, faster' production option. They are neither pro nor anti American or domestic production. They are in survivalist mode.
Now, how can we address the first half issue in the video? Make American labor and production the 'quicker, better, cheaper, faster' option. Due to labor laws and amazingly complex regulations from work place safety to environmental concerns (OBTW...these are important, but we've passed the point of diminishing returns some time ago) the costs of American labor are generally higher.
Please note that American labor can still be paid at a higher wage rate if that same labor can be commensurately more productive than foreign labor options. Example, if we assume the Michigan factory worker costs (wages, benes and taxes like Unemployment insurance, workman's comp, etc.) $60 per hour, but produces $100 worth of goods in that same hour will be the 'quicker, better, cheaper, faster' option compared to the foreign laborer that may only cost $2 per hour, but only produce $2.50 worth of goods. How to achieve this? We are already (especially in Michigan) WANTING MORE LABOR! We lead the country in manufacturing jobs, and America STILL leads the world in manufacturing (as of 2012). But jobs have been lost. Yet so many firms in Michigan have job openings that are going unfilled because that more productive laborer is not to be found. This is due to individuals foregoing education in engineering and other high-skill fields. Students would rather major in a liberal art than in a math-intensive study. Due to this, we lack the labor force and our businesses are not as competitive as they could be.
DO NOT BE FOOLED into thinking a solution of 'buying American' will solve this. It will just lead to higher priced goods vis-a-vis the world, and a waste of scarce, valuable resources.
