Biden to sign order for govt to
Buy more US goods
BALTIMORE, Jan 25, (AP): President Joe Biden was set to sign on Monday an executive order that aims to boost government purchases from US manufacturers, according to administration officials.
The United States has shed roughly 540,000 factory jobs since last February as the coronavirus pandemic hurled the world’s largest economy into recession. The goal of the order would be to use the $600 billion the federal government spends on procurement to boost domestic factories and hiring, said officials who insisted on anonymity to discuss the forthcoming announcement.
Biden’s order would modify the rules for the Buy American program, making it harder for contractors to qualify for a waiver and sell foreignmade goods to federal agencies. It also changes rules so that more of a manufactured good’s components must originate from US factories. American-made goods would also be protected by an increase in the government’s threshold and price preferences, the difference in price over which the government can buy a foreign product.
The order also has elements that apply to the separate Buy America program, which applies separately to highways and bridges. It seeks to open up government procurement contracts to new companies by scouting potential contractors. The order would create a public website for companies that received waivers to sell foreign goods to the government, so that US manufacturers can have more information and be in a more competitive position.
To help enforce these goals, the order establishes a job at the White House Office of Management and Budget to monitor the initiative and focus on ensuring the government buys more domestically made goods. It also requires federal agencies to report on their progress in purchasing American goods, as well as emphasizing Biden’s support for the Jones Act, which mandates that only US-flag vessels carry cargo between US ports.
Past presidents have promised to revitalize manufacturing as a source of job growth and achieved mixed results. The government helped save the automotive sector after the 2008 financial crisis, but the number of factory jobs has been steadily shrinking over the course of four decades.
The number of US manufacturing jobs peaked in 1979 at 19.5 million and now totals 12.3 million, according to the Labor Department. Biden’s predecessor, Donald Trump, famously promised a factory renaissance, yet manufacturing employment never returned to its pre-Great Recession levels before the coronavirus struck.
Meanwhile, Biden signed executive action Friday to provide a stopgap measure of financial relief to millions of Americans while Congress begins to consider his much larger $1.9 trillion package to help those affected by the coronavirus pandemic.
The two executive orders that Biden signed would increase food aid, protect job seekers on unemployment and clear a path for federal workers and contractors to get a $15 hourly minimum wage.
“The American people cannot afford to wait,” said Brian Deese, director of the White House National Economic Council. “So many are hanging by a thread. They need help, and we’re committed to doing everything we can to provide that help as quickly as possible.”
Deese emphasized that the orders are not substitutes for the additional stimulus that Biden says is needed beyond the $4 trillion in aid that has already been approved, including $900 billion this past December. Several Republican lawmakers have voiced opposition to provisions in Biden’s plan for direct payments to individuals, state and local government aid and a $15 hourly minimum wage nationwide.
Most economists believe the United States can rebound with strength once people are vaccinated from the coronavirus, but the situation is still dire as the disease has closed businesses and schools. Nearly 10 million jobs have been lost since last February, and nearly 30 million households lack secure access to food.
One of Biden’s orders asks the Agriculture Department to consider adjusting the rules for food assistance, so that the government could be obligated to provide more money to the hungry.
Children who are unable to get school meals because of remote learning could receive a 15% increase in food aid, according to a fact sheet provided by the White House. The lowest-income households could qualify for the emergency benefits from the Supplemental Nutrition Assistance Program. And the formula for calculating meal costs could become more generous.
The order also tries to make it easier for people to claim direct payments from prior aid packages and other benefits. In addition, it would create a guarantee that workers could still collect unemployment benefits if they refuse to take a job that could jeopardize their health.
Biden’s second executive order would restore union bargaining rights revoked by the Trump administration, protect the civil service system and promote a $15 hourly minimum wage for all federal workers. The Democratic president also plans to start a 100-day process for the federal government to require its contractors to pay at least $15 an hour and provide emergency paid leave to workers, which could put pressure on other private employers to boost their wages and benefits.