As local leaders scramble to reignite their economies, some are pushing for their own governments to pitch in and buy local.
More than 20 states already have "Buy American" laws, though it's rarely enforced. But with local and state governments spending nearly $2 trillion, officials are starting to pay closer attention, according to ABC News.
"A pretty large share of dollars the state spends with local businesses go into local wages," Stacy Mitchell, a senior researcher with the Institute for Local Self-Reliance, told ABC News. "The business is also sourcing some of the stuff it needs to operate from other local businesses. And so there's just more economic activity, more income, and that means more tax revenue."
In Minnesota, law enforcement agencies must buy U.S.-made uniforms and protective gear. Illinois agencies, looking for plastic goods, must favor companies that use by-products from the state's corn, and North Dakota mandates that state office buildings can only fly American flags that were sewn in the U.S.
But critics say "Buy American" laws are probably illegal, because it tramples on the federal government's rights on commerce, and that it is inefficient and increases the cost for the taxpayers who pay the bills.
"Local preference laws distort economic markets, serve as a barrier to free competition, and increase procurement costs because of the need to verify that businesses or products qualify for a socioeconomic benefit," Matt Grayson, a spokesman for the National Association of State Procurement Officials, told ABC News.
More than 20 states already have "Buy American" laws, though it's rarely enforced. But with local and state governments spending nearly $2 trillion, officials are starting to pay closer attention, according to ABC News.
"A pretty large share of dollars the state spends with local businesses go into local wages," Stacy Mitchell, a senior researcher with the Institute for Local Self-Reliance, told ABC News. "The business is also sourcing some of the stuff it needs to operate from other local businesses. And so there's just more economic activity, more income, and that means more tax revenue."
In Minnesota, law enforcement agencies must buy U.S.-made uniforms and protective gear. Illinois agencies, looking for plastic goods, must favor companies that use by-products from the state's corn, and North Dakota mandates that state office buildings can only fly American flags that were sewn in the U.S.
But critics say "Buy American" laws are probably illegal, because it tramples on the federal government's rights on commerce, and that it is inefficient and increases the cost for the taxpayers who pay the bills.
"Local preference laws distort economic markets, serve as a barrier to free competition, and increase procurement costs because of the need to verify that businesses or products qualify for a socioeconomic benefit," Matt Grayson, a spokesman for the National Association of State Procurement Officials, told ABC News.
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