Let me just say that I don’t get it. There are some people in politics, many of whom I agree with and respect, who are wildly upset that US Steel was sold to a Japanese company. I don’t get it.
Honestly, as long as it’s not an enemy of the United States, who cares who owns it? It’s not like the physical plants can be picked up and moved out of the country. The cries of national security also fall flat with me. If need be, were there an emergency, US Steel would still be subject to the Defense Production Act. If they refused to produce steel for the government in an emergency, the federal government could essentially seize it and make it. Though, can you really envision a scenario in which a Japanese company tells the United States to get bent?
I just don’t get it.
I’ll probably catch hell for this, but I don’t care – it’s much easier to simply tell the truth than it is to try to pander to people because then you don’t have to remember what lies you’ve told to which people. If a Japanese company offers the best deal for US Steel, sell it.
My opinion would be different were it China, Russia, Iran, etc., but it’s Japan. And again, what are they going to do – dismantle every physical presence of US Steel in the country and ship it overseas?
If they did that, the government would stop them. But exactly where a company that buys another company is located doesn’t matter, if they are located in an allied country.
These Members of Congress – a bi-partisan group of Senators led by Ohio’s Republican J.D. Vance to Pennsylvania’s Democrat John Fetterman – are raising a stink and calling for the Biden administration to block the sale. On what grounds?
I realize that question is heresy in the “America First” world, but how is it not putting the country first to keep US Steel in business? Were there America buyers lining up to buy the company, only to be shut-out by Nippon in some unfair way? No. Was Nippon out-bid, but US Steel decided to go with the second-place offer? No.
Then what is the problem?
The real issue here is there’s a very important election next year and everyone is looking to pander to as many people as they can. It is an effective way of campaigning, it’s not the best way of governing. It sounds bad, and it sounds scary – especially in a time of economic unease – to see a US company purchased by foreign company. But I assure you it doesn’t matter.
When I was a kid growing up in Detroit, in a UAW home, I have vivid memories of Japanese cars sitting in the parking lot of the local softball fields and people could take 3 swings at them with a sledgehammer for, if I remember correctly, $5. It happened a few times, and I believe the money either went to charity or something union related. But the sentiment behind it was always fear – fear of losing jobs because of competition from overseas.
The problem wasn’t the competition, it was the fact that US automakers never innovated or bothered listening to their customers. Bad products make foreign products more appealing.
Once the Big Three realized that, and avoided bankruptcy, they got their act back together and survived. And thrived.
When Chrysler was bought by Daimler there wasn’t this kind of freak out. Since then, the company's own Chrysler has merged into a huge auto company out of Italy. Everyone survived. And if you don’t think the auto companies aren’t important to national security, you are wildly unfamiliar with your World War II history.
The freak out will continue, the posturing will go on, and politicians will raise money and get national media attention off it all. But unless and until someone can show me a concrete reason to block this that makes sense, and I haven’t heard anything close to one so far, I’ll look at this like I would my sister dating a Canadian. Sure, it’d be nice if she dated an American, but if none worthy have stepped up, I’m just glad she’s happy.