According to a CNBC article, Walmart is intending to bolster the economy and support American products by spending $350 billion on “products made, assembled or grown in the U.S.” over the course of the next 10 years.

On the surface, this may appear as a decision influenced by political and popular sentiment, as opposed to a business one.

The two are not mutually exclusive.

While it is true that buying Made in USA is a trend driven by emotion, there are very good economic reasons as well, including:

– The pandemic caused shortages in certain goods, both raw and finished, because of the reliance on foreign sourcing.  Without these goods, supply could not meet demand, thus driving the prices up until inventory ran out. 
– Cheaper is not necessarily better.  Several consumer surveys have shown that US consumers are willing to pay more for products of higher quality.   US manufactured products are typically of higher quality.
– By creating more jobs in the US, you’re helping the local, state, and national economies.  A healthy economy drives consumer spending.  So although you may pay a little more directly, there are indirect economic benefits that make up for it.
– U.S. companies and manufacturers are held to higher federal and state environmental regulations. When you Buy American, you know that you’re helping to keep the world a little cleaner for future generations. 

Time will tell if Walmart can stick to its goal of supporting American products and materials. Should Walmart find a way to source reliably the items they need to keep this promise, the US economy and the American people will be the beneficiaries.

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