pull down to refresh
100 sats \ 2 replies \ @Bell_curve 19 Apr \ parent \ on: Tariffs Are Taxes on Americans—But Protectionists Pretend Otherwise econ
How many steel producers in North America?
Is US steel a monopoly?
I know since 1970 American steel producers have used an outdated and more expensive method for making steel.
It’s not just China. It used to be steel from Indonesia, South Korea and Japan.
Recently Nippon Steel offered to buy US steel for 14 billion. The second highest offer was 7.5 billion. Should shareholders take the lower offer in the name of patriotism?
Fair points.
US Steel is not a monopoly but I think it is fair to call the Steel market an oligopoly and no shareholders should not take a lower offer out of patriotism.
I completely understand the dynamics of why the market doesn't want domestic steel but I am playing devil's advocate on the validity of tariffs in certain industries.
My argument is if shit hits the fan and you can no longer rely on economic partnerships with your adversaries or the kindness of your friends you probably want to have some semblance of domestic industry for critical resources, materials, energy, food etc.
I am not saying tariffs are the only tool or even the best tool for the job just playing devil's advocate.
reply
I get it
The American steel industry has used the national security argument since 1960 to justify tariffs.
But the last 60 years have demonstrated how they have fallen behind their foreign competitors.
The other problem is their labor costs are comparatively high because of the steel workers union.
Does national security depend on union workers? Of course not
In the case of Nippon Steel buying US Steel, we get the best of both worlds. Foreign investment and expertise, the company is still on American soil
I agree we are too dependent on Taiwan and South Korea for chips and semiconductors. Also certain generic drugs are exclusively imported from Taiwan, India and China. That is madness.
We have created a very fragile system. Globalization is fragile.
reply