Thursday, March 07, 2002
Interesting article on the economic problems associated with protection of the steel industry.
Interesting quote from the previously referenced article:
Steel users employ 57 workers for every one employed in steel production. Steel users account for 13.1 percent of gross domestic product (GDP), while steel producers account for only 0.5 percent. Yet responding to steel producers’ self-inflicted problems with more protectionism will only saddle downstream steel-using industries with price hikes and supply shortages that handicap them vis-à -vis their international competitors. It is bad enough to punish one sector for the failures of another; it is downright foolish, though, to do so when the punished sector is of overwhelmingly greater economic significance.
Interesting quote from the previously referenced article:
Steel users employ 57 workers for every one employed in steel production. Steel users account for 13.1 percent of gross domestic product (GDP), while steel producers account for only 0.5 percent. Yet responding to steel producers’ self-inflicted problems with more protectionism will only saddle downstream steel-using industries with price hikes and supply shortages that handicap them vis-à -vis their international competitors. It is bad enough to punish one sector for the failures of another; it is downright foolish, though, to do so when the punished sector is of overwhelmingly greater economic significance.
