Buy American Act for Government contracts Essay Example | Topics and Well Written Essays - 500 words

Buy American Act for Government contracts - Essay ExampleParticular materials under regulations include iron, steel, and make goods (Zirkelbach, 2009, p. 7).The regulations only allows for use of non domestic materials if either the materials be not produced in America in the required quantity or quality, application of domestic materials will be up to at least twenty five percent more expensive and if application of domestic products will contravene public interest. Any waiver on the mentioned yard must however be reported in writing. BAA regulations however exempt some countries, countries with trade ties to the United States. These countries enjoy the benefits as though their products were manufactured in the United States. The Buy America act rules have further put more restriction over allowance on construction materials that are products of non-domestic raw materials. The raw materials, under BAA, must be at least fifty percent domestic (Zirkelbach, 2009).The provisions of B uy American Requirements are inequitable to other countries whose materials are restricted from being used in constructing the United States public facilities. The act discriminates against these countries and their enterprises. The regulations specifically undermines developing countries, and their enterprises, that might not be in a position to produce the materials in large quantities, as large as could not be produced by the United States domestic market (Lipsey and Chrystal, 2007).A free market economy is identified by influence of buyers and sellers only, as opposed to government imposed regulatory measures for controlling the economy. Application of the Buy American requirements act, together with its aim of facilitating the ARRAs goals of strengthening the United States economy therefore contradicts the the spirit of capitalism. Policies for a capitalistic economy would for example be aimed at liberating regulations that limits