You have probably seen the bumper stickers.  “Buy American!” the stickers proclaim.  Politicians trumpet the virtues of buying products made in America and bloviate endlessly about things like “energy independence” and the need for “fair trade.”  Producers of American-made goods often display little U.S. flags on the packages with “Made in USA” underneath.  It is a good marketing gimmick, but is it good economics?  Is it OK to discriminate against those who produce overseas?  President Obama recently railed against the Chinese for devaluing their currency and making their goods less expensive for Americans to purchase – as if this were somehow a bad thing.  We all want to pay more, right?  The big American labor unions benefit tremendously if they can convince Americans to buy only their expensive products rather than less expensive (and often better made) products from overseas.  Their employers also benefit, and these powerful interests work together to get laws passed to keep foreign goods out.  So what is the best policy?  Should America open its borders to both people and products, or should we maintain barriers to keep foreign products and people out?  Reading: Steven Landsburg, “What Cayley Knows” (excerpt from Steven Landsburg, The Armchair Economist)  The essay is available in file folder one on the class website.