How Politics Screw up the Economy

Here’s an example of how politicians screw up the economy.

The steel producing industry is part of the primary metal manufacturing which includes nonferrous metals, such as copper, aluminum, magnesium, lead, tin, silver, and gold. Value added for that entire industry totaled $59.7 billion and employed 400,000 people in 2014. The steel industry employs somewhere in the range of 100,000 – 150,000 people.

By contrast, downstream industries that use steel as an input generate value added of $990 billion and employed 6.5 million people in 2014. Think cars, home appliances, things you as a consumer buy.

By “protecting” the steel-producing industry the government is harming the much larger steel-consuming industries and its customers. A bad deal.





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