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Senator Schumer: Stimulus Should Buy American
Thursday, 05 November 2009 20:38
buy_american"I urge you to reject any request for stimulus money unless the high‐value components are manufactured in the United States," powerful Senator Chuck Schumer writes to Stephen Chu, urging him to deny funds to a billion dollar wind farm in Texas because they are using Chinese turbines. Schumer told Tom Zeller he would "introduce legislation if such funding isn’t reconsidered." Larry Strickling dropped the "Buy American" requirements of the broadband stimulus after a massive lobbying campaign by Alcatel and Cisco, but the legislation might re-instate them. If this moves forward - politicians say a lot - stimulus applicants need to be ready with a U.S. made alternative.

 

"Buy domestic" rules have a mixed history, with clear benefits for "infant industries" and waste behind the protective wall for others. To get an exception for broadband, Alcatel argued "Buy American" was impractical because much of the equipment simply wasn't made in the U.S. Actually, Zhone and others manufacture commercially competitive gear of types Alcatel said were not made in the U.S. So does Alcatel, according to what they tell the RUS, including the 7300 that's the heart of their DSL and fiber lines. That is another story.

My guess is Schumer won't follow through, but the RUS has suggested that American manufacturing is a good idea for folks looking to get money from them.

Schumer's rhetoric is strong, "The purpose of the Recovery Act was to jump‐start the economy to create and save jobs –American jobs. Yet, the Texas wind farm project would create an estimated 2,000‐3,000 clean energy manufacturing jobs – in China. American taxpayer dollars should not be used to finance those Chinese jobs. I respectfully urge you to deny Recovery Act funding to this project unless the majority of components are manufactured in the United States."

 

Meanwhile, Alcatel does need to double check they still are manufacturing units in America they are telling RUS they are manufacturing in America. They probably aren't.