The Diminishing Effect of Buying Imports VS Investing in U.S. Made

Every dollar spent on American Manufacturing returns at least $1.89. If that dollar circulates and is used again on Made in USA products, the dollar continues to compound for the good of the community. The opposite can diminish a dollar offshore.

“While fair trade with friendly countries is important to businesses and consumers, this data shows that continued investment in domestic production will create millions of jobs and opportunity for growth.  A modern infrastructure upgrade is needed in the U.S. that integrates the coming technologies of the 4th industrial revolution, including 5G, AI, and IoT. That’s where massive resources should be used – with an emphasis on the return of the costs to local communities & manufacturers,” said Jason Blount, Chief Information Officer of Made in America.

Figure 2 summarizes how expenditures on imports are distributed between the local content that stays in this country, imported content that goes overseas to our major trade partners, and overall (last bar). For example, of all consumer expenditures in goods that are made in China, more than half stays in the United States as payment for local content. For the United States as a whole, the overall share of local content of imports in the U.S. is about 43%. So the .55 cents shown in the graphic above only applies to China.

Importance of Manufacturing in the U.S. Economy

Manufacturing is an essential component of gross domestic product, which was $2.33 trillion in 2018, and drove 11.6% of U.S. economic output, according to the Bureau of Economic Analysis. Manufactured goods comprise half of U.S. exports.

Manufacturing adds a lot of value to the power of the U.S. economy. Every dollar spent in manufacturing adds $1.89 in business growth in other supporting sectors, including retailing, transportation, and business services.

According to the Bureau of Labor Statistics, the United States has 12.85 million manufacturing jobs, which employs 8.5% of the workforce, and pays 12% more than other jobs. Yet, 89% of manufacturers are leaving jobs unfilled because they can’t find qualified applicants, according to a 2018 Deloitte Institute report. The skills gap could leave 2.4 million vacant between 2018 and 2028. That could cost the industry $454 billion in 2028.


Federal Reserve – How Much Do We Spend on Imports?


What’s the Return of a Dollar When You Spend it on American Made?

Many Americans prefer to buy domestic products to benefit from higher quality and durability. What many don’t know, however, is that when they spend money on American made products, they’re contributing to a much greater cause.

Among the many reasons to buy local is the certainty that you’re helping your local economy. Whenever $1.00 is spent in manufacturing, another $1.82 is added into the economy.

The multiplier effect in manufacturing is higher than any other U.S. sector.

So, what is the multiplier effect? When you buy an American made product, it doesn’t just benefit the manufacturer. Because manufacturing has such a large supply chain and demand, its success can stimulate economic activity across a number of other essential sectors. When factories are producing more goods, they require more materials and services from suppliers, generating income and creating jobs in all sectors involved, such as transportation, communication, retail, construction, and so many others. This is called backward linkage.

For example, a car from your local dealership would have backward linkage to companies in the glass, steel and rubber industries. You can rest assured that your purchase is supporting jobs in these areas.

On the other hand, manufacturing also has a high forward linkage because of how many people are directly and indirectly employed within the sector. Forward linkage happens when manufacturing and supply chain employees spend their hard-earned money, putting it back into the local economy.

In other words, buying local recirculates more money into your local economy than buying from an absentee-owned business or foreign franchise. Thus, bringing more income and jobs into your area.

When consumers take the alternative route and spend money on foreign goods, they are not contributing to the multiplier effect–however, they are not throwing away all of their money as some people might think. A study by the Federal Reserve Bank of San Francisco found that, although Chinese-made products make up 2.7% of U.S. consumer spending, only 1.2% actually reflects the cost of the imported goods. On average, of every dollar spent on an item labeled “Made in China,” 55 cents go to services produced in the United States–but 45 cents is still taken out of U.S. circulation.

This is the diminishing effect of buying outsourced products. Every time you buy a product from China, an average of 45 cents is lost to Chinese manufacturers. Instead of creating money within the local economy, you take money out of local circulation and overseas.

So, the choice is clear if you care about our country. Buy local when possible to support domestic workers and help our economy grow stronger.

The power of change is in your pocket.

U.S. Chamber opposes ‘Buy American’ bill for Medical Supply Chain Investments

White House trade adviser Peter Navarro said Sunday that President Donald Trump will sign an executive order this week that would help bring pharmaceutical and medical supply chains back to the U.S., in part by placing new “Buy American” requirements on certain government agencies. And White House economic adviser Larry Kudlow added Monday the Trump administration is considering cutting taxes for companies that relocate their supply chains to the U.S.

Neil Bradley, the chief policy officer at the U.S. Chamber of Commerce, said a renewed emphasis on Buy American could hurt the international flow of medicine and medical supply chains.

This is not new news that the U.S. Chamber opposes Buy American bills.

Here are headlines the U.S. Chamber has released in the last 10 years.

January 2009 U.S. Chamber Opposes Counterproductive ‘Buy American’ Provisions

January 2010 The Cost of Buy American Mandates on American Jobs

June 2016 Reject the Expansion of “Buy Local” Rules

July 2017 The Illusion of ‘Buy American’ Policy

The above quotes from the U.S. Chamber of Commerce don’t align with our goals. “The Coronavirus has had a negative effect on the US economy and set fear into most Americans. The positive effect it has had is a renewed awakening on the leverage China has on our Medications and the supply chain on most of our products. It is unfortunate that the U.S. Chamber of Commerce has taken this stance.” – Don Buckner, Founder,

While we believe in fair trade with countries to help maintain the supply of medical equipment and pharmaceuticals, we also believe it’s a national security risk to depend on an adversary for the majority of medications and medical equipment our country needs. It is smart to bring back domestic production of this industry to balance dependency during a crisis.

China RX

Using Medicines as Leverage for Global Power

The country that controls medicines controls the world.

If China stopped exporting ingredients to the US, within three months all the pharmacies would be empty.

Guy Villax CEO Hovione

U.S. has virtually no manufacturing capacity to make generic antibiotics

Because China makes the key ingredients, the U.S. can’t make generics antibiotics for:

  •   Anthrax exposure
  •   Strep throat
  •   Ear infections
  •   Urinary tract infections
  •   Pneumonia
  •   Lyme disease
  •   Tooth infections
  •   STDs
  •   Superbugs
  •   And much more

China Controls 80% of the Key Ingredients in World’s Medicines

China makes about 80% of the world’s active pharmaceutical ingredients, chemical intermediates and raw material for medicines.

United States Doesn’t Make


The last U.S. penicillin plant closed in 2004.

Vitamin C

Chinese companies are required by law to fix prices and control supply to the U.S.

Here is how we lost our manufacturing of Vitamin C

There has been an ongoing court case that went to the supreme court. A handful of Chinese companies came in and, once again, dumped really cheap ingredients to make ascorbic acid. This drove out all the producers in the United States and around the world. There were a handful of companies that challenged this, saying this is antitrust, against our laws. So in a federal court in Brooklyn, a jury saw this for what it was. There was unequivocal evidence. There was no dispute that the Chinese companies fixed prices and controlled supply of vitamin C to the U.S. There was a settlement that the Chinese companies had to pay. That was not the end of it. The Chinese companies appealed in federal court. Here was their argument — and the Chinese government actually came to U.S. federal court to put in a brief, and said we required our companies, as a matter of Chinese law, to fix prices and control the supply of ascorbic acid and vitamin C to the U.S.

Here is what members of congress can do

First, they need to have accurate information. They should ask why is that chemotherapy drugs are in shortage? They need to get the real deal. Not just that we are having trouble with our suppliers. If the product was banned by the FDA because it had huge issues of integrity of their product, members of congress should know that. There was a plant in China that exploded, and it exploded because the workers were not handling the chemicals right and that triggered a global shortage of an antibiotic to treat a life-threatening infection called sepsis. Members of congress should know that. We have a shortage of heparin, a blood thinner. We get so much of the raw material to make heparin from China.

The second thing that needs to be done is let’s get rid of the red tape. Make it much easier for the department of defense, our military, and the VA to find alternative suppliers, trustworthy customers — companies, who want to make quality medicines for our military at a fair price and sign long-term contracts for that, so our military and veterans do not have to go without. and that will support manufacturing to come back home, revitalize communities, and bring jobs back. – Rosemary Gibson, Senior Advisor to the Hastings Center

“The national security risks of increased Chinese dominance of the global active pharmaceutical ingredient (API) market cannot be overstated.”

– Christopher Priset, Department of Defense

It is a huge national security issue

Think of what you could do with medicines in a geopolitical context. If you control the supply of penicillin, if you are the dominant use of antibiotics, you can withhold those. You can contaminate them. You can make them look like medicine and have nothing in them. If you want to destabilize a country and demoralize a population really quickly, all you have to do is withhold medicine.

“My blood-pressure medications were contaminated with rocket fuel. I imagine active people have the same problem. This affects the readiness of our troops.” – Dr. Larry Wortzel, Retired Army Colonel

“Part of my mission on this issue is to make sure that these supply chains are delivering what we need and the epiphany I’ve had is that far too many of our pharmaceuticals, medical equipment and supplies have been offshored. Advanced manufacturing will allow us to bring domestic production back and lower the cost.” – Peter Navarro, Trade Advisor to White House

READ CHINA RX By:Rosemary Gibson

We are a nonprofit focused on driving economic development and job growth by changing consumer behavior through education.

Do you have questions? Call or visit us.

(888) 286-9110

712 S. 14th Street
Leesburg, FL. 34748, USA


Get latest news & update

© 2021 – All rights reserved.

Carefully crafted by MadeInAmericaOrg