Why American-Made Products Cost More And Why Government Should Still Buy Them
It is now our patriotic duty to Buy American made products and stop supporting our enemies!
MadeInUSA.com highlights the high cost of government-imposed burdens, such as regulations, labor, and taxes, that increase the cost of U.S.-manufactured goods.
How Tax Dollars are Spent Determine the Health of the American Economy”
LEESBURG, FL, UNITED STATES, August 22, 2025 /EINPresswire.com/ -- MadeInUSA.com, a national digital marketplace for American-made goods, is calling on policymakers to strengthen procurement standards that prioritize domestically manufactured products. The initiative follows the recent passage of the All-American Flag Act in July 2024, which requires federal agencies to purchase only U.S.-made flags.— How Tax Dollars are Spent Determine the Health of the American Economy
Cost Drivers of U.S. Manufacturing
American-made products often carry higher prices due to compliance with federal and state requirements. U.S. manufacturers are mandated to:
Pay wages significantly above global averages.
Meet environmental standards set by the Environmental Protection Agency (EPA).
Comply with workplace safety requirements enforced by the Occupational Safety and Health Administration (OSHA).
Contribute to Social Security, Medicare, unemployment insurance, and employee healthcare.
Pay a range of federal and state taxes, including property, energy, and income taxes.
These factors reflect regulatory and tax obligations that shape the cost structure of domestic production.
Economic Multiplier of Domestic Spending
When tax dollars are spent on American-made goods, the funds remain within the U.S. economy. Each transaction generates additional value through payroll, corporate, sales, and property taxes. For example, in a state with a 7% sales tax, if $1 spent on a U.S.-made product changes hands once per week for a year, it would yield $3.64 in cumulative sales tax revenue alone. Additional layers of payroll and income tax collection increase this effect, producing a measurable multiplier for government revenues.
A U.S. Department of Commerce analysis and other economic studies estimate that redirecting $100 million in government spending from imported to U.S.-made goods could generate a total economic impact ranging from $150 million to $300 million. This figure includes direct purchases, job creation, and increased tax revenues.
Current Procurement Levels
According to the Congressional Research Service, federal agencies spent over $600 billion on contracts in 2023, but only about 5% went to goods that fully complied with domestic content preferences under the Buy American Act. Strengthening these requirements could increase that percentage and drive measurable economic benefits.
The Buy American Act has already been associated with the creation of roughly 100,000 manufacturing jobs, though estimates place the cost at $111,500–$137,700 per job created. Reforms scheduled through 2029 are projected to add 41,000 additional jobs with similar cost structures, according to the National Bureau of Economic Research.
Legislative Example
The All-American Flag Act (2024) provides a recent example of targeted procurement legislation. The Act requires that all U.S. flags purchased by federal agencies be produced entirely in the United States, serving as a model for similar measures across other product categories.
About MadeInUSA.com
MadeInUSA.com is a national digital marketplace dedicated to promoting American-made products and supporting domestic manufacturers. The platform connects consumers and institutional buyers with companies committed to producing goods in the United States, advancing economic growth and national resilience.
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Why Manufacturing is the Center of the American Economy
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