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----- Original Message ----- 
From: Downwithcapitalism <[EMAIL PROTECTED]>
To: <[EMAIL PROTECTED]>
Sent: Sunday, June 10, 2001 12:06 AM
Subject: [downwithcapitalism] 'Ballad of American steel'



Times of India. 10 June 2001. [T]he ballad of American steel. Excerpts.


Since the general impression these days is that much of the world is
putty in American hands, especially when it comes to military and
economic matters, a curious development occurred in the world of
American steel last week that puts this premise in some doubt. In an
extraordinary move, President George W Bush announced broad restrictions
on steel imports into the US.

If you have managed to extricate your tongue from your larynx, try this
again. A fervent votary of free trade in a country pledged to free
market in an era sworn to free flow of goods, actually erected a trade
barrier to protect what was once the world's dominating steel industry
from piddling foreign imports.

The American steel story is so sad and stained that once proud workers
have now composed "The Ballad of American Steel" to capture the economic
misery and social trauma of its downturn. A celebrated sector that
epitomised America's industrial might and threw up such business icons
as Andrew Carnegie and J P Morgan is now in terminal decline.

The ostensible reason -- the American version -- is the flood of cheap
imports from countries such as South Korea, Ukraine, Kazakhstan, China,
Brazil and India (yes, India! we manage to get in some 500,000 tonnes,
too). Of course, the exporting countries argue that it is a result of
poor management and extravagant practices by American steel mills, not
to speak of their own excellence.

In either or both cases, the end result is the American steel industry
has been sounding the death rattle for some time now.

A sector that employed 800,000 people till the 1980 is now down to
150,000. A score of American steel mills, including the giant LTV, have
closed shop or filed for bankruptcy in the last four years. American
steel imports are now up to 25 percent of its consumption (and it is a
big consumer given the size of its military and its automobile
industry). The American steel industry is putty in the hands of Koreans,
Chinese, and Indians.

Meanwhile, the ballad turned into a dirge that Bill Clinton had no ear
for. Nor for that matter had George Bush. After all, here was a
president from a party with an even greater free trade fetish. Among his
more evangelical quotes: "When we negotiate for open markets, we are
providing new hope for the world's poor. And when we promote open trade,
we are promoting political freedom." How fatuous it sounds now that he
is beginning to erect the steel barrier.

But such is the stuff of politics. In this case, the pressure on Bush
came as much from 300,000 retired steel mill workers as the 150,000
active workers, all of who stand to lose their health care and other
benefits if the imports make any more inroads.

Besides, the American steel industry, would you guess, is concentrated
mostly in Pennsylvania, West Virginia, Ohio, Illinois, and of course,
Florida. All electorally borderline states. And just in case you forgot,
Bush gained the presidency by winning the electoral college votes but
lost the popular vote by less than 300,000 votes. Perhaps it would be
fair to now call Bush a steely president?

So, all the netas and babus back in India nervous about the prospect of
Uncle Sam wagging his finger at the protectionist barriers they erect to
protect the poor Indian farmer from American food imports, take heart.
The American steel saga is instructive of how even the greatest free
trade proponents are not free from the pressure of populism.

















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