Bye, Bye, American

Economy: In barring foreign steel from infrastructure projects and forcing payment of "prevailing wages," [union wages] the stimulus bill merges the Davis-Bacon and Smoot-Hawley acts in a way that could be a recipe for depression.

[Could be? They're considered key factors in worsening the great depression - what do we think they could do this time around?]

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UPDATE: Obama Will Review Buy American Provision in Stimulus

Jan. 30 (Bloomberg) -- President Barack Obama’s administration will examine a “buy American” requirement in economic stimulus legislation that has raised concern among U.S. trading partners, White House press secretary Robert Gibbs said.

The issue may cloud Obama’s trip to Canada on Feb. 19, his first journey outside U.S. borders as president. Officials in Canada, the top U.S. trade partner, are criticizing a part of legislation that passed the U.S. House of Representatives Jan. 28 that requires the use of U.S.-made iron and steel in infrastructure projects.

Ralph Goodale, house leader for the opposition Liberal Party, said today in Parliament. Prime Minister Stephen Harper said yesterday that he will complain to U.S. officials over the “buy American” measure. “This is obviously a serious matter,” he said.

The provision also is opposed by U.S. companies with significant sales overseas such as General Electric Co. and Caterpillar Inc., which warn it may spark other countries to retaliate by restricting U.S. products.

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