Economic nationalism, epitomized by slogans like “Buy American,” is gaining traction in political rhetoric. While the idea of boosting domestic production and protecting American jobs sounds appealing, it often leads to higher prices and fewer choices for consumers. Policies mandating domestic sourcing and production tend to result in more expensive and less efficient products. Research indicates that such measures can cost taxpayers significantly more than the value of the jobs created. For instance, “Buy American” rules have been shown to inflate job costs to over $250,000, burdening consumers with higher expenses. Other countries, like Hungary, France, and Italy, have pursued similar nationalist economic strategies, only to face inflated prices, monopolies, and consumer dissatisfaction. These policies ultimately harm the poorest consumers the most, as they struggle with higher costs for everyday goods. Despite promises of strengthening supply chains, economic nationalism often sacrifices efficiency for political gain, leaving consumers to foot the bill.
— new from Foundation for Economic Education
