Just 13 days remain before Joe Biden is officially sent into retirement. How much more damage can he do? If the past month is any indication, the answer is plenty.
In keeping with Biden’s pattern in recent weeks of using the powers of his office for personal and political purposes, the president last week nixed a proposed $14 billion merger between U.S. Steel and Japan’s Nippon Steel. Biden cited national security concerns for his decision. In reality, the move was a payoff to Big Labor that will hurt U.S. consumers and potentially hasten the demise of U.S. Steel.
The United Steelworkers union had opposed the merger, hoping “to create a steel-making cartel shielded from foreign competition by tariffs and Buy America rules,” The Wall Journal observed. Union boss David McCall can read the room: Industrial policy (read: government economic intervention) and trade barriers are all the rage in Washington, even with President-elect Donald Trump. The marriage would have undermined his union’s influence. Mr. Biden was only too happy to do the bidding of a politically connected special interest.
“This acquisition would place one of America’s largest steel producers under foreign control and create risk for our national security and our critical supply chains,” Mr. Biden explained.
That’s a crock — and some members of Biden’s team admit it. “Bad decision,” an official told CNN. “Doesn’t actually protect union jobs and may kill the company.”
National security? Japan is one of our closest allies, willing to work with the United States to challenge China’s economic nationalism. Sources told the Journal that “it became clear that the final arguments pitted Biden’s political instincts against global considerations.” Politics won.
Jason Furman, a former economics adviser to President Barack Obama who now teaches at Harvard, summed up the cynical charade. “President Biden claiming Japan’s investment in an American steel company is a threat to national security is a pathetic and craven cave to special interests that will make America less prosperous and safe,” he wrote in an X post. “I’m sorry to see him betraying our allies while abusing the law.” Sorry, but hardly surprised.
U.S. Steel now faces an uncertain future. Domestic suitors are few and far between. The company’s infrastructure is in desperate need of improvement and investment. “If U.S. Steel can’t turn around unprofitable plants, it may have no choice but to close them,” one analyst told NBC News. How that will help communities or union members is unclear.
Biden’s political play sets a bad precedent and sends the wrong signal to a trusted ally. It also makes clear that the president would rather satisfy the interests of his union pals rather than foster the existence of a competitive and vibrant American steel industry.
— From Tribune News Service
