President Biden has signed an executive order directing federal agencies to spend more of the government’s annual $600-billion purchasing budget with U.S. companies, particularly small and medium-sized businesses and companies owned by minority entrepreneurs.
“Under the previous administration, federal government contracts awarded directly to foreign companies went up 30 percent,” Biden said when signing the order. “That is going to change on our watch.” Although current law directs government spending toward American businesses, the rules under the law are loose and subject to interpretation.
Biden’s order makes the rules more explicit and also establishes a “Made in America” director inside the Office of Management and Budget. The director will review requests for waivers to the more stringent rules.
The order also mandates federal agencies to make greater use of the Manufacturing Extension Partnership, a web of small and mid-size manufacturers around the country.
The order to work with small companies will boost fledgling tech enterprises developing artificial intelligence systems, innovative batteries, biotech, and other breakthroughs that will “sharpen America’s innovative edge in markets where global leadership is up for grabs,” Biden said.
TRENDPOST: While the “Made in America” Biden announcement made the headlines, it will do next to nothing to generate growth in the U.S. manufacturing sector, which accounts for only 12 percent of the nation’s GDP.
As we have reported, Joe Biden was a strong supporter of President Bill Clinton’s deal to bring Communist China into the World Trade Association in 2000. Just ten years later, in 2010, China overtook the United States as the world’s top manufacturer. According to the United Nations Statistics Division, China was responsible for 28 percent of global output in 2018.
