Roy wrote:73 years ago, Chinese-Americans protested US sales of scrap iron to Japan, which used it to wage war in China. In 1958, Mao launched the Great Leap Forward, one of the aims of which was to dramatically increase steel production. Now, China makes the most steel of any country, followed by second-place Japan. The US trails both, at #3.
Roy, the tale of US steel making is a sad one, littered with all sorts of blunders, corruption, and stupidity. I attribute it to:
1) Too much power and inflexibility in the unions (yes they were formed for valid reasons but they never got past the us vs them mentality to see the economic danger to the industry)
2) Congress' refusal to defend US steelmaking from illegal dumping and corporate espionage. Good 'ol Congress can be counted on to be lobbied by foreign money and to be too slow to react. Steel joins the list of well-defended industries such as automobiles, small appliances, textiles and electronics.
3) Steel management - a monument to stupidity if there ever was one. Too reluctant to deal with labor effectively, too inflexible to handle the changes, too stupid for not bribing everyone in Congress.
Anyway, that's my take on it.
George