Most people who only "Buy American" hold a patriotic belief that U.S. jobs and wages are hurt when consumers buy imported goods. This is a holdover from centuries of European (and American) mercantilism, an economic belief that a country's economy depends on restricting its imports and encouraging its exports. But beyond that, some people are simply offended by the words "Made in China." They feel that to trade with the Chinese is to condone human rights abuses, and, in some extreme cases, to actually fund the potential for Communist Chinese aggression.
If you really believe in free markets, though, you're going to downplay the need to "Buy American." Harry Binswanger, writing for the Ayn Rand Institute, describes such shopping rules as collectivist: "In purchasing goods, we are expected to view ourselves and the sellers not as individuals, but as units of a nation. We are expected to accept lower quality or more expensive goods in the name of alleged benefits to the national collective." He argues that refusing to buy from foreigners can be a xenophobic act, even racist, and claims that real individualists buy the "best, wherever it may be found." And he's right. Basing purchasing decisions on factors other than product quality can create a false demand for what may be inferior or over-priced goods. Limiting your own freedom of choice in the marketplace may be moral, but it's economically short-sighted.
But should we denounce the freedom to be economically short-sighted? I doubt Binswanger would ever support restricting consumer choice, even when the choice is to avoid foreign products, but most arguments against the "Buy American" rule ignore the fact that any consumer base is naturally diverse. What motivates consumers to buy varies widely. Some consumers look for bargains to fit within strict budgets. Some limit themselves to a confidence in certain brand names. Some search out impeccable workmanship with less concern for cost. Some have abandoned any hard and fast rule. And some fear communism. They all shop accordingly.
Some consumers even use their purchasing power to express their views on social or political issues. The corporate desire to appear environmentally "friendly" is based on the market reality that consumer esteem isn't always earned by the best product at the lowest cost. Positioning, these days, is just as likely to be based on corporate causes as on reliability or price. Companies conspicuous about their environmentalism expect to gain an edge in the race for consumer esteem among certain political bases.
Esteem for a company can also be built by responding to the social and political leanings of specific age groups, ethnicities, or genders - while totally circumventing the value of the product or service actually being sold. And if American companies can earn consumer esteem by tapping into national patriotism or xenophobic fears, you can be fairly certain they'll take the consumer's invitation to do so.
If we're truly committed to the dynamism of "free" trade, we must accept the choices consumers make, and defend their freedom to buy environmentally-conscious products, or to buy cheaper Chinese products, or even to buy only American products, if they so choose.
