Despite the increasingly polarized political climate, leaders on both sides of the aisle — from progressives to the "new right" — have found common ground in their growing entanglement of politics and business. No longer content with traditional boundaries between the public and private sectors, they see government intervention as a means to shape market outcomes. This shift represents a retreat from free-market principles, sowing uncertainty for businesses that rely on predictability and openness to thrive and prosper.
The latest chapter reveals a troubling bipartisan resistance to Japanese steelmaker Nippon Steel’s bid to acquire U.S. Steel. Once a symbol of American industrial strength, Pittsburgh-based U.S, Steel has struggled for decades to reclaim its glory from the post-WWII baby boom era. Yet, amid a promising offer for significant foreign investment, American political leaders appear more concerned with nationalistic campaign optics than with the long-term viability of this vital company. Instead of embracing much-needed capital, election year sentiments cloud the decision-making process, stalling the Biden administration’s Committee on Foreign Investment in the United States (CFIUS) review and jeopardizing our economic future.
From an economic standpoint, blocking this sale — as Biden is attempting, and both major parties’ presidential nominee pledges to do — is short-sighted. Without fresh investment, U.S. Steel may not survive. The jobs and economic stability that political leaders claim to protect could be lost entirely. While it may win candidates brownie points in this election, as they constantly invoke their middle class childhood and pledge to put “America First”, blocking this deal would deprive US Steel of critical resources needed for modernization, growth, and stability.
For those who live beyond the Monongahela Valley, the broader message a failed Nippon acquisition sends to the global business community is serious. Not only could tens of thousands of Pittsburghers lose their means to provide for their family, but rejecting foreign investment for political reasons creates a perception that the United States is no longer an attractive place to do business. In a globalized economy, this stands as a clear and present danger to the long-term prosperity of the American economy, threatening the very foundation of our future success.
Candidates for office, from municipal elections to the presidency, should articulate a clear vision for the prosperity and wellbeing of our country. As a part of that platform, they ought to commit themselves to not gambling American business opportunities for political games. Whether its culture war attacks against Disney or worrisome debanking of political opponents, politicians taking aim at free enterprise to score points — largely just media attention — should be a red flag for United States voters.
Interfering with private business dealings, such as the Nippon Steel acquisition can have seismic effects on investor confidence in U.S. markets. Potential investors are likely to think twice before committing capital in nations where political intervention can derail their plans. In the spirit of unity and common purpose, we must remember that America thrives when we embrace what has made us great: innovation, collaboration, and a welcoming attitude toward investment, both domestic and foreign. We are a nation built on the dreams and hard work of individuals, not just the ambitions of politicians.
What is needed is a return to pragmatic decision-making that puts the fundamentals back in focus. Business decisions should be evaluated on their financial merits, applying principles such as the consumer welfare standard, rather than political ideology. For investors and business leaders, this is more than a policy debate; it’s about risk management. If the politicization of business continues, companies will face an increasingly unpredictable operating environment. When political leaders intrude into corporate transactions, it creates uncertainty, complicating business and making risk assessment harder for investors. This lack of confidence drives capital away from the United States, enabling our adversaries such as China.
As the United States charts its economic future, the choice is clear: prioritize competitiveness or permit political interference to undermine the pillars of growth. The way forward demands a renewed commitment to the free-market principles that have long fueled American prosperity. Remember, a strong economy is about more than just numbers; it’s about the dreams and aspirations of everyday people. If we let bureaucratic hurdles hold us back, we risk losing the very spirit that makes America special.
