Steel thyself, Karl Rove


How many economists said that the steel tariffs were a bad idea? Liberal, conservative, and nonpartisan economists were all saying that the steel tariffs were a bad idea, and everybody knew the tariffs were only to increase his poll numbers. Granted, I'm not a perfect laissez-faire economist. I believe that the government has a place in the market, correcting market failures as they become apparent. But interfering in international trade was a stupid way to do it.

Steel Tariffs Appear to Have Backfired on Bush (washingtonpost.com):
In a decision largely driven by his political advisers, President Bush set aside his free-trade principles last year and imposed heavy tariffs on imported steel to help out struggling mills in Pennsylvania and West Virginia, two states crucial for his reelection.

Eighteen months later, key administration officials have concluded that Bush's order has turned into a debacle. Some economists say the tariffs may have cost more jobs than they saved, by driving up costs for automakers and other steel users. Politically, the strategy failed to produce union endorsements and appears to have hurt Bush with workers in Michigan and Tennessee -- also states at the heart of his 2004 strategy.

"They tried to play politics, and it looked like it was working for a while," said Bruce Bartlett, a conservative economist with ties to the administration. "But now it's fallen apart."

(snip)
A study backed by steel-using companies concluded that by the end of last year, higher steel prices had cost the country about 200,000 manufacturing jobs, many of which went to China. Small machine-tool and metal stamping shops say they have been decimated by steel costs that rose in some cases by as much as 30 percent.

Steel producers have their own job numbers. Investments that flooded into the protected steel industry over the past 18 months brought idled steel mills back on line and kept teetering mills from shutting down, said Peter Morici, a University of Maryland business professor hired by the steel producers. That resurrected 16,000 steel jobs, and more than 30,000 jobs when steel suppliers are included.


-200,000+30,000=-170,000 jobs. Thanks, Karl.

Popular posts from this blog

New post-convention poll Results look good to me. Now, we have to keep them coming. Further down in the article, there is discussion of how Kerry is gaining ground as a person who understands the needs of people, and a person of character. Key problem is going to be keeping these issues in front of voters, when the Kerry campaign will have a finite amount of cash to campaign on. Bush won't have a finite amount until the Republican convention at the end of August. Other people are going to have to step up and start hammering the Bush administration. Kerry Leads Bush in Post-Convention Poll (washingtonpost.com) : The new poll shows Kerry now claims the support of 50 percent of all registered voters, compared with 44 percent for Bush, with independent candidate Ralph Nader at 2 percent. On the eve of the convention, Bush led Kerry 48 percent to 46 percent. Among those most likely to vote, the race is tighter: Kerry holds a 2-point advantage over Bush in the current po...
Read more
Sometimes headlines just write themselves Like this one from the Washington Post today: Ex-FEMA Head Starts Disaster Planning Firm Michael Brown certainly has shown he can plan a disaster. Look at how awful Hurricane Katrina was. For preventing or fixing things afterwards, he's not so good.
Read more
Reading List It is a good thing to be married to a librarian. Our local system has a web-accessable catalog where I can put a book on hold. Depending on how many people are waiting for the book, in a few days to a few months, my wife comes home with the book I've requested. I was reading "A Mathematician Plays the Stock Market" by John Allen Paulos. It is the kind of book that makes mathematics of investing accessable to non-mathematical types (and some of us mathematical folks as well), even as he tells the story of his failed love affair with Worldcom stock. Of course, I set this aside as soon as I got in "Big Lies: The Right-Wing Propaganda Machine and How It Distorts the Truth" by Joe Conason. This book takes all of the distortions of the right-wing media, the Bush-Cheney administration, and the Republican "conventional wisdom", and proceeds to refute them, citing facts chapter and verse. I think this book is great. But I've g...
Read more