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stasisLAX
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U.S. Steel Industry Wants $1 Trillion Stimulus

Fri Jan 02, 2009 3:07 am

"The industry itself is turning to government for orders that, until the September collapse, had come from manufacturers and builders. Its executives are waiting anxiously for details of President-elect Barack Obama’s stimulus plan, and adding their voices to pleas for a huge public investment program — up to $1 trillion over two years — intended to lift demand for steel to build highways, bridges, electric power grids, schools, hospitals, water treatment plants and rapid transit.

“What we are asking,” said Daniel R. DiMicco, chairman and chief executive of the Nucor Corporation, a giant steel maker, “is that our government deal with the worst economic slowdown in our lifetime through a recovery program that has in every provision a ‘buy America’ clause.”

Economists in the Obama camp said the president-elect’s proposals to Congress will include significant infrastructure spending that draws on heavy industry.

New spending should provide an immediate jolt to the steel business, which has already gone through the painful makeover now demanded of automakers. Steel mills were closed, companies were consolidated, hundreds of thousands lost their jobs and the survivors agreed to concessions. As a result, productivity shot up and so did profits, to record levels in the first nine months of this year. Even as the economy wobbled, steel held its own.

But then the recession hit in force. Steel goes into nearly everything made in America, from homes and office buildings to cars, appliances and light bulb sockets, and as construction and manufacturing wound down, so did the output of steel, plunging 50 percent since September."

Source: http://www.nytimes.com/2009/01/02/business/02steel.html?hp

[Edited 2009-01-01 19:10:17]
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airportugal310
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RE: U.S. Steel Industry Wants $1 Trillion Stimulus

Fri Jan 02, 2009 3:26 am

Quoting StasisLAX (Thread starter):
“What we are asking,” said Daniel R. DiMicco, chairman and chief executive of the Nucor Corporation, a giant steel maker, “is that our government deal with the worst economic slowdown in our lifetime through a recovery program that has in every provision a ‘buy America’ clause.”


It seems to me that telling American's to "buy American" is very un-American in a sense...

no?

[Edited 2009-01-01 19:27:20]
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Flighty
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RE: U.S. Steel Industry Wants $1 Trillion Stimulus

Fri Jan 02, 2009 5:27 am



Quoting AirPortugal310 (Reply 1):
It seems to me that telling American's to "buy American" is very un-American in a sense...

no?

It depends. This is (supposedly) an arm of the government. So it makes sense that people working for the US government would be Americans. The US government usually buys American cars for example. It's not a total stretch to imagine they are buying American steel. But it is a stretch. I am against it.

We don't require the government buy American televisions... that would be silly. Almost no televisions are made in the USA. So why would the government need to buy American TVs for its projects... that would be silly.
 
pacificjourney
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RE: U.S. Steel Industry Wants $1 Trillion Stimulus

Fri Jan 02, 2009 8:17 pm

... and so it begins.

Not only will eveyone now have their hand out for public $$$ they will also demand 'protection' from those pesky foreigners.

Falling back into a new age of protectionism - especially via this back door - must be resisted at all costs.
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dxing
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RE: U.S. Steel Industry Wants $1 Trillion Stimulus

Fri Jan 02, 2009 9:04 pm

The title of the thread is misleading. The steel industry doesn't want a 1 trillion stimulus, they want a share of the talked about 1 trillion stimulus.

Quoting StasisLAX (Thread starter):
up to $1 trillion over two years

Man if this mess goes through I never better ever hear another word about deficit spending concerning the Bush administration. My advice to everyone would be to buy some gold because at some point they aren't going to have a choice but to set the printing presses on high gear at the mint.

The steel industry needed help 30 years ago when we were allowing foriegn companies to just dump steel in this country at a loss.
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Mir
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RE: U.S. Steel Industry Wants $1 Trillion Stimulus

Fri Jan 02, 2009 10:43 pm



Quoting Pacificjourney (Reply 3):
Not only will eveyone now have their hand out for public $$$ they will also demand 'protection' from those pesky foreigners.

Falling back into a new age of protectionism - especially via this back door - must be resisted at all costs.

 checkmark  Here's a stimulus idea for the steel companies: offer a quality product at a competitive price, and the government will buy it for public works projects. I'd even be willing to let them charge a bit more (within reason) in order to keep Americans employed. But spending taxpayer money on American goods simply because they are American doesn't make much economic sense.

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pacificjourney
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RE: U.S. Steel Industry Wants $1 Trillion Stimulus

Sun Jan 04, 2009 9:09 am



Quoting Mir (Reply 5):
Here's a stimulus idea for the steel companies: offer a quality product at a competitive price,

Oh boy, now you're in trouble. No one likes a stirrer with silly ideas like this !
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Superfly
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RE: U.S. Steel Industry Wants $1 Trillion Stimulus

Sun Jan 04, 2009 11:34 am

The US Government owes a bailout to every industry it failed to protect.


Go ahead and flame me all you want.
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AircraftGeek
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RE: U.S. Steel Industry Wants $1 Trillion Stimulus

Sun Jan 04, 2009 11:42 am



Quoting Superfly (Reply 7):
The US Government owes a bailout to every industry it failed to protect.

 checkmark 

On the other hand, printing new money to inject into the economy is not difficult at all, Chinese will be happy to finance further the US public debt by buying Treasury securities.  Wink
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Charles79
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RE: U.S. Steel Industry Wants $1 Trillion Stimulus

Sun Jan 04, 2009 2:09 pm



Quoting DXing (Reply 4):
The title of the thread is misleading. The steel industry doesn't want a 1 trillion stimulus, they want a share of the talked about 1 trillion stimulus.

Correct, they are simply joining the chorus of all sorts of sectors pushing for this $1-trillion stimulus (including industries such as the air conditioning manufacturers, house builders, retail sector, the airlines, heck even the librarians association's got its hand out).

Quoting DXing (Reply 4):
because at some point they aren't going to have a choice but to set the printing presses on high gear at the mint.

I wonder about this too if we'll end up buying a loaf of bread with a $20 without expecting much in change. It seems like our government opened the flood gates when it passed the $700B bailout back in Sept and now everyone is under the impression that they are entitled to a piece of the pie.

Quoting AircraftGeek (Reply 8):
On the other hand, printing new money to inject into the economy is not difficult at all, Chinese will be happy to finance further the US public debt by buying Treasury securities.

I wonder for how much longer though. I also wonder how they are going to react when the debt matures and we can't afford to repay.
 
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Francoflier
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RE: U.S. Steel Industry Wants $1 Trillion Stimulus

Sun Jan 04, 2009 2:26 pm



Quoting AircraftGeek (Reply 8):
Chinese will be happy to finance further the US public debt

Ah, But will they? Especially if the US starts implementing protectionist measures to protect its local industry...

Quoting Charles79 (Reply 9):
(including industries such as the air conditioning manufacturers, house builders, retail sector, the airlines, heck even the librarians association's got its hand out).

Well, since everybody and their dead grandmas is getting a piece of the pie... Do you know where I can apply?
 biggrin 
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ltbewr
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RE: U.S. Steel Industry Wants $1 Trillion Stimulus

Sun Jan 04, 2009 2:29 pm

The "Buy American" idea is often a huge refuge of many a politician to get local votes. Problem with such rules are that they may run afoul of various international trade agreements we have. Of course in the past we made deals to protect the USA based steel makers and companies ignoring trade agreements.

The steel industry in USA and Canada employs many 1000's of people with many facing losing their jobs too. The boom in commercial building, cars and some manufactured products over the last number of years created a 'bubble' there too. Now with what could be long-term lower demand for products due to tighter financing, the use of other materials, the decline of heavy manufacturing in the USA yet still needing to keep a certain level of production to stay in business, they are also looking for a cut of the potential 'stimulus' monies to be spent with them.

In most cases as to structural steel for bridges, buildings and other infrastructure projects, the practical issues of lead times, transportation costs, just in time delivery, very specific fabrication requirements and better quality control access, will most probably lead to a very high percentage of 'American' sourcing. Some less critical or standardized items made of steel may be made imported at significant savings to the taxpayers as well to attempt to balance out the potential trade conflicts.

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