Bang for your buck

By Jennifer J. Foster

Published: March 23, 2009

A story in today’s Kansas City Star   tells us that the U.S. Agency for International Development has distributed an estimated 10 billion U.S.-made AIDS-preventing condoms in poor countries around the world.

And now they have a “condom conundrum.“

In a move expected to cost 300 American jobs, the government is switching to cheaper off-shore condoms, including some made in China.

The switch comes despite implied assurances over the years that the agency would continue to buy American whenever possible.

“Of course, we considered how many U.S. jobs would be affected by this move,” said a USAID official who spoke on the condition that he would not be named. But he said the reasons for the change included lower prices (2 cents versus more than 5 cents for U.S.-made condoms) and the fact that Congress dropped “buy American language” in a recent appropriations bill.

OK. So, money from the stimulus bill was supposed to stimulate the American economy. But under this plan, not only is it not going to be used to stimulate the American economy; it’s going to be used to stimulate the Chinese economy—and increase our trade deficit with that country.

???????

As my friend Brian LeCompte points out on Flashpoint, it’s bad policy to fund condom procurement and distribution through the stimulus bill. But if the provision was creating or protecting American jobs, then at least a decent argument could be made for it as part of the stimulus.

But it helps a Chinese company—at the expense of an American one.

So, what’s more important? Getting the most “bang for your buck,“ so to speak, or protecting American jobs?