Forbidding the use of cheaper foreign alternatives, the new law is sure to raise the cost of needed infrastructure projects. In turn, the state will either be forced to let the state’s roads and bridges further degrade, make cuts from elsewhere in the budget to accommodate the spending increase, or raise taxes on New Yorkers. Even worse, the law takes effect amid a rising budget deficit and a report card from the American Society of Civil Engineers, which hands the state a grade of D+ for its bridges and D- for its roads.
The case against Buy American laws is so straightforward that even a politician should be able to understand it. Simply put, every extra dollar spent on the purchase of an American-made product instead of a cheaper foreign-made alternative is a dollar wasted. The new Tappan Zee Bridge, for example, required 110,000 tons of steel. Every $10 extra per ton spent on steel represents a reduction in state coffers of more than $1 million for no discernible benefit. Politicians don’t shop this way with their own dollars, so why does cost-effectiveness cease when tax dollars are on the line?