O'Neill says politics fueled steel tariffs

post-gazette.com ^ | Tuesday, January 13, 2004 | Len Boselovic

[Destro]

When President Bush imposed tariffs on imported steel in early 2002 -- and when he lifted them 20 months later -- pundits were convinced the decisions were based less on economics and more on how many votes the decisions would win or lose for Republicans in the 2002 congressional elections and this year's presidential election.

[TheAngryClam]

DUH! alert.

[Texasforever]

Who didn't know this? It was political and one of the few times Bush disgusted me.

[Keith]

next to headline, "Clinton likes women".

[Howlin]

I am frankly stunned that Bush EVER appointed this guy; how could he possibly be so dumb?

First he didn't know Hussein was a bad guy and now this?

Good grief.

[onyx]

What? No DUH ping? You mad at me?

[TheAngryClam]

My apologies!

DUH! ping

[Fledermaus]

Actually, the tariffs did work. They showed the world we were serious (enough where the EU pretened to "retaliate"). The EU, Japan and others were illegally dumping steel for years.

The appox. one year tariff changed their minds. Sure, it "hurt" some small businesses in the U.S. But so does every single policy we have or regulation we create.

And it told the steel industry here to get with it and modernize. The same message needs to be heard in the textile industry that has done almost NOTHING to modernize to compete and have lived off government protection for decades and still lose market share.

[onyx]

LOL! That's better. DUH and brain dead pings are a must. :)

[ambrose]

DUH ping?

[FirstPrinciple]

What does "illegal dumping" mean?

[TheAngryClam]

"politics fueled steel tariffs"

Well, duh, O'Neill.

That's the "Duh! ping."

[Fledermaus]

Countries like Japan would put steel on the market below the cost of production and cover the cost with government tax money.

It's the same concept that robber barons in the 1880's to 1930's used to squelch competition.

Folks like Carnegie and Vanderbilt could afford to take losses and keep their prices below costs to drive out new start ups.

Teddy Roosevelt busted up a lot of the practice while his distant cousin FDR made it illegal.

[Paleo Conservative]

Bump!

[lelio]

And it told the steel industry here to get with it and modernize.

What modernization did the steel plants due during the time of the steel tariffs?

[Fledermaus]

Long term changes in production methods and cost control. At least that is what I read.

[lelio]

Do you have some articles? I can't imagine then doing anything different in the short time the tariffs were in place. They can't turn on a dime.

[ambrose]

"politics fueled steel tariffs"

This *is* news. I had orginally been under the impression that President Bush arrived at the steel tariff position after reading "The Trend of Economic Thinking: Essays on Political Economists and Economic History" by F. A. Hayek.

[Fledermaus]

I didn't say they could turn on a dime. But they were encouraged to change. Also, the Bush administration isn't stuck in the enviromental muck like liberals and will let companies gradually make changes whereas the left wants all or nothing.

Thus companies can change manufacturing methods without having to jump through years of bureaucratic hoops and red tape needed. Let's say there is a process today that cuts down the waste of coke used to make the steel. Under liberal BS they have to spend millions just to comply while the Bush admin will let them make those changes more gradually and cost effectively. Especially when it comes to pollution control.

All or nothing gets you nothing.

I don't have any articles at hand, just Google it.

[lentulusgracchus]

LOL!