Good Question: Can Buying US Products Help The Economy?
MINNEAPOLIS (WCCO) — When we go to the mall, the labels most of us look at have to do with size and style. But what about where the merchandise comes from?
It made one viewer wonder, does buying more American products improve the economy? The answer is, it’s complicated.
That’s according to Toby Madden, a regional economist with the Federal Reserve Bank of Minneapolis.
He said there are simply some products we can’t create here at home or products that can’t keep up with demand.
“For example,” Madden said, “if we decided to cut off all imports of petroleum and gasoline that would have a big spike in the price of gasoline here in America.”
When most people are pinching pennies, the shopper’s pocketbook can override the importance of buying at home. And economists point out, the more you spend on those products, could mean less money in the economy.
“I really don’t care what country it’s from, as long as it’s cute and affordable,” said one shopper.
However, buying from American companies would increase the products being made in America and from there you would create more jobs.
Bottom line — there’s pros and cons.
Economists say it is a global economy, so we give as much as we get.
According to the 2010 census, the top importers of American products are Canada, followed by Mexico and then China.
Canada and Mexico import cars and parts, while China’s largest import is computer accessories.