“The tariffs are working,” said John Ferriola, Nucor’s chairman, chief executive and president. “They are protecting our national security and stimulating additional domestic steel production.” (From a NY Times article,"Steel Giants With Ties to Trump. . ." published August 5th, 2018)
Now I remember one of the things I liked about Ayn Rand. There was in her writing an intolerance for business being supported or subsidized by government. She had little use for government, period. Today, I question much of her dogma. Government does have a proper role in the economy and the world at large. What we have here, however, leading players in the steel business using political connections to their advantage, we would most likely be in agreement on.
I was simply disgusted by the above comments made by the Chairman of Nucor today. His praise of government intervention "protecting our national security and stimulating domestic steel production". Basically forcing American businesses to now come to him and do business with Nucor as his company is the only game in town, courtesy of the US government.
This is why I latched onto Rand back in the day. The above is simply not business. It is theft. Rand was correct in such assertions. Nucor's increase in sales has nothing to do with the quality of its product. Nucor and US Steel are rather relying on the US government to increase their market share. In short, saying to American businesses you will deal with us or you will not do business, all courtesy of the US government. And the only thing the US government brings to the table is the only thing it can bring to the table, its ability to impose tax. In short, it's ability to use force.
Oh yes, the counter is that the Chinese and others are dumping steel. In the process, Nucor and US Steel, which both have their men in the commerce department, are now guaranteed a seat at the table. They not only have a seat, they control the table. And those at the table will now play Nucor and US Steel's game. The other players have no say in this game.
And the only people in this game are Americans. The charge was made routinely by Republicans not too long ago that Obama was choosing winners with investments such as Solyndra. This is the exactly the same thing here. Both today's tariffs and Obama's Solyndra investment fall victim to Rand's charge that business is relying upon the power of the state to profit, to thrive, and that in essence is an assault on the right to property.
And for those who like their economic history, mercantilism failed.
For the details, do check out "Steel Giants With Ties to Trump Officials Block Tariff Relief for Hundreds of Firms", Jim Tankersley, New York Times, August 5th, 2018
