In their misguided efforts to protect U.S. Steel workers, a number of politicians have opposed the proposed Nippon Steel Company acquisition of U.S. Steel. They have ignored the facts and details of the deal, and have inexplicably complained that a $15 billion investment in the United States would somehow hurt U.S. workers, the U.S. manufacturing industry, and the U.S. economy.
A new study by Stephen Moore and Philip Kerpen of the Committee to Unleash Prosperity has found that the Nippon Steel-U.S. Steel combination would be an enormous win for American workers and the U.S. manufacturing industry. According to the study, the acquisition would be “enormously beneficial to American workers” and would “save America’s steel industry.”
Last year, U.S. Steel’s rival Cleveland-Cliffs attempted to acquire the company with a low-ball offer of $7.3 billion. This was a bad deal for U.S. Steel. The takeover would likely have resulted in the closing of U.S. Steel’s Pittsburgh headquarters, the loss of the U.S. Steel name, and the reduction of a significant number of U.S. Steel jobs.
The company then accepted the nearly $15 billion offer from Nippon Steel Company, which pledged to keep the U.S. Steel name and headquarters in Pittsburgh, and to protect all existing U.S. Steel jobs and collective bargaining agreements. The deal is a clear win for workers, shareholders, and the U.S. steel industry.
As the study points out, the U.S. steel industry has been struggling for many years, as protectionist policies such as import quotas, tariffs, and Buy American provisions have done little to protect the industry. One major benefit of the deal would be the technological advancements Nippon Steel would bring to U.S. Steel and the entire U.S. steel industry. Nippon Steel’s massive investments in new technology would increase domestic production of high quality steel, benefiting U.S. Steel and other manufacturing sectors and leading to better products for U.S. consumers.
The deal would also make the U.S. steel industry more competitive with Chinese steel. China currently dominates the global steel industry, which is the real threat to our national security. This Nippon investment in America would help U.S. Steel modernize, grow, and expand production and be better able to compete against China.
The study notes that this foreign investment is a massive bet on the future success of U.S. Steel and the American economy, giving Nippon Steel a vested interest in promoting the growth of U.S. Steel production. Rather than harming America, this and other foreign investments create millions of high-paying U.S jobs and fuel U.S. economic growth.
Unfortunately, this deal has become entangled in election year politics, especially in a battleground state. Hopefully, common sense will prevail. As this study shows, the Nippon-U.S. Steel deal is good for U.S. Steel, the city of Pittsburgh, and the Commonwealth of Pennsylvania. It is a clear economic win for America.
Nippon Steel - U.S. Steel Merger Would Be a Clear Win For U.S.
August 06, 2024
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