Good Idea Doomed to Fail: Unpacking the latest 'Made in the USA' Bill

A great intent drowned into social entanglement preventing the expected results to realize...

Back in 2022, we advocated for a policy boost to revitalize the "Made in USA" initiative in a now famous article.

In 2024, a new bill submitted to the house is promoting an intriguing proposition called the Made in the USA bill. The mechanism incentivizes customers, rather than producers, by offering tax breaks for consuming USA-made products.

Unfortunately, the bill already has numerous limitations likely to hinder its significant impact on the customer journey.

Firstly, the cap on consumer revenue excludes the top 20%, who possess most of the purchasing power and are willing to support more expensive producers committed to the "made locally" pledge. This exclusion of those in higher tax brackets also eliminates individuals seeking tax break opportunities - theoretically, the target audience of the bill.

Furthermore, the exclusion of luxury goods and a maximum allowance of $5k per household hinders support for the few remaining US activities producing higher-value products. While toaster manufacturers may no longer exist on US soil, high-end kitchen appliance producers still thrive.

While the idea holds promise in promoting new customer behaviors, the overly strict limitations prevent the bill from making a meaningful impact. Slowly but surely, the concept will progress beyond internal political divides and ultimately serve the people.

One day...

An article fully #MadeInUSA

Think Encore!