If you’ve been keeping a close watch on the economy lately, then you’ve probably heard something about the steel industry. Since foreign steel is being sold at much cheaper prices, the debate has been whether or not to enforce tariffs. The United States’ steel industry is losing money and has been asking — or should I say pleading — with the government to bail it out for quite some time. But, of course, steel consumers, who number 50 for every one steel worker, think they’re getting quite a “steal” and don’t want to pay higher prices for the same goods made in the United States.
Like most political situations, this was a sticky one for President Bush. How to please everyone? Quite simply, he couldn’t. But at least he could have pleased the majority of people. Everyone thought Bush would take the middle ground and enforce a mix of quotas and light tariffs on certain products. Instead, Bush has decided to enforce a 30 percent tariff on all main products phased out over three years. He may be making senators from steel-producing states happy, but he’s upsetting many of the very people who helped him get where he is, such as car manufacturing companies.
As a candidate in the 2000 elections, Bush broadly pushed popular programs such as education and prescription drug benefits for seniors, and he promised to weed out needless defense spending. So much for those supposed “promises.” They have been flushed down the congressional toilet in the name of the “war on terrorism” and combating the proclaimed “recession.” I suppose Americans ought to be understanding about the budget deficit issue, but this whole tariff thing has gone a little far.
Basically, other countries have been subsidizing their own wealth and “dumping” their products on us. True, it is hard on the steel industry, but it helps everyone else. Now we may save steel industry jobs, but it’s more than likely
that other industries will have to lay off workers as they pay higher prices for steel. Not only this, but our relationships with foreign producers will be severely damaged, including our important allies in the war on terrorism such as Brazil, Argentina, Russia and Turkey. Now talk is brewing in Europe and Latin America of possible trade retaliations. Yet for some reason these problems seem to be overlooked. Like usual, the U.S. government is only thinking about the benefits for our nation.
What about struggling foreign economies? What if other countries start enforcing huge tariffs on our products? How are we going to feel then? This whole notion could seriously derail trade talks in the future.
Bush may be trying to gain support for fast-track legislation and increase his friends in steel-producing states, but he has forgotten the vast majority who enjoy cheap steel. If countries want to practically give us their products, why are we refusing? The benefits definitely exceed the costs. After all, the whole idea of capitalism is survival of the fittest, right? Tariffs subvert this power of the invisible hand to guide production and actually keep inefficient producers in business. We live in cruel times, but the steel industry just needs to face the facts — if you can’t cut it, you get cut — and stop this crying-to-Daddy-Bush nonsense.