The costs and benefits of maintaining the Buy American Act
By: Keith A. Hirschman
Contributors: Naval Postgraduate School (U.S.)
Publisher: Naval Postgraduate School; Available from National Technical Information Service
Published: 1998
Place of publication: Monterey, Calif; Springfield, Va
Language: eng
Number of pages: 89
Description: This thesis explores the costs and benefits of the Buy American Act (BAA). The BAA requires a domestic preference for all Federal Government purchases. The thesis uses accepted economic analysis on the gains from international trade to show that the costs of maintaining such protectionist legislation are potentially high relative to the uncertain benefits of maintaining excess industrial surge capacity. Moreover, surge capacity did not appear to be an issue in the debate over passage of the BAA in 1933. Passed at the trough of the depression, the Act appears to have been motivated by the mistaken belief that it would on net save U.S.      jobs. In light of the declining real procurement budget  for the Department of Defense, a relaxation of the BAA seems called for. This thesis concludes by  recommending that the scope of  the Buy American Act be narrowed.
Notes: "June 1998."

Thesis advisor(s): David R. Henderson, Mark W. Stone.

Thesis (M.S. in Management) Naval Postgraduate School, June 1998.

Includes bibliographical references (p. 85-88)

Approved for public release, distribution unlimited.

Also available online.

Mode of access: World Wide Web.

System requirements: Adobe Acrobat reader.

US Army (USA) author.

updated dlb 12/12/06