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When you buy locally, you have better knowledge and more control over how your stuff is made.
Very nearby you could see the chickens your eggs come from, or the ovens that bake your bread.
Farther afield you know a domestic manufacturer has to meet some national standards for worker safety and pay, as well as some environmental standards, tho you may not be able to personally inspect their operations.
If you don't know where your stuff comes from, you really can't make a good decision on whether people and environment are benefiting from making the item you purchase.
We people who buy stuff are really the ones who make the decisions. That is what the thread is about, (not what the government responsiblities are).
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By the way, can post'rs keep the responses a bit more concise? Some of these longer threads sound a bit like the uni-bomber's manifesto and make my brain hurt.
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