Does American Steel Still Matter? by Pat Choate (NAPSA)—Americais the world’s largest steel consumer. And its demandfor steel continues to grow. Last year, for instance, the United States used 39 percent more steel than it did in 1980 and 85 percent more than in 1960. Experts predict America’s demand for steel will remain vigorous well into the future. Cars, trucks, buildings, rails, highways, appliances, ships, tanks and guns, among other goods, all depend on steel. After years of massive investment, technological improve- ments, and reductions in its work- force, America’s steel producers are the most advanced and the most productive in the world. Yet, 25 American steel producers are now in bankruptcy. For many Americans, it is diffi- cult to understand how these bankruptcies could be happening at a time of a high and growing domestic demand and a productive domestic industry. The answer is massive global overcapacity and equally massive foreign subsidies. Mostof the steel imported into America today is selling below its cost of production—often far below. Other nations need dollars and jobs. Subsidizing their steel exports is an easy way to get both. Are these subsidized steel imports a bargain for American consumers? Yes, but only for the shortterm. Longer-term, subsidized imports will destroy a vital American industry and good-paying, highquality U.S. jobs. In an uncertain and dangerous world, moreover, does America really want to become dependent US Steel Consumption and Production Million Net Tons of US Steel Consumption and Production 140 120 100 80 60 40 20 0 1960 1980 Consumption 2000 US Production American Iron and Stee! Institute @ Mostof the steel imported into America today is selling below its cost of production. on Russia, Japan, China, Brazil and developing countries for somethingso basic as steel? Abraham Lincoln framed the issue nicely more than a century ago. Hesaid, “If we purchase a ton of steel rails from England for $20, then we have the rails and England the money. But if we buy a ton of steel rails from an American for $25, then America has both the rails and the money.” A strong domestic steel industry made sense for America then. It makes sense for America now. Manythink that strengthening manufacturing in America matters. Whatdo you think? For more information, visit www.craftedwithpride.org. Pat Choate is a Washington, DC based author and economist.
