4 ms·

The collapse of 'big steel' should be a warning for climate skeptics

13 points by makerofspoons 6y ago

redis_mlc 6y ago
The article is confused, unedited b.s. comparing steel price dumping 40 years ago with pouring money into various govt. programs of today, written by some leftist political hacks.
jjk166 6y ago
While I agree with the thesis of this article, it's analogy to the steel industry is deeply flawed. Big steel did not collapse, it merely transformed. US share of steel production dropped, but this was because of expansion in other countries, not contraction in the US, where we still produce 80% of 1970's level by weight, but now produce many much more advanced (and valuable) alloys. Employment fell due to process changes and technology improvements that rendered many jobs obsolete - with similar employment drops everywhere from germany to brazil to south africa at the same time. A lot of traditional steel towns suffered as their plants closed, but this was because of the industry's shift to mini-mills that were placed closer to end-consumption; 50% of US steel production capacity was built in the past 30 years, and at least prior to the pandemic there were many more plants scheduled to be built in the next decade. Honestly, the real story of the steel industry is a much more compelling analogue. The major domestic steel producers neglected investment in new technology and thus charged high prices for the labor intensive steel they produced. Imported steel was cheaper, but it was low quality. Nucor, which at this point was just a steel joist manufacturer that found itself with no good steel supply decided to invest in the new steel making technologies which quickly allowed it to outcompete the established hegemons. It and a few other steel producers that got their start in the 70s revolutionized the industry. Likewise, those who are hesitant to take risks on new green technologies will be left in the dust as their industries get transformed by new-comers who aren't set in their ways.

13 points by makerofspoons 6y ago

The article is confused, unedited b.s. comparing steel price dumping 40 years ago with pouring money into various govt. programs of today, written by some leftist political hacks.

jjk166 6y ago

While I agree with the thesis of this article, it's analogy to the steel industry is deeply flawed. Big steel did not collapse, it merely transformed. US share of steel production dropped, but this was because of expansion in other countries, not contraction in the US, where we still produce 80% of 1970's level by weight, but now produce many much more advanced (and valuable) alloys. Employment fell due to process changes and technology improvements that rendered many jobs obsolete - with similar employment drops everywhere from germany to brazil to south africa at the same time. A lot of traditional steel towns suffered as their plants closed, but this was because of the industry's shift to mini-mills that were placed closer to end-consumption; 50% of US steel production capacity was built in the past 30 years, and at least prior to the pandemic there were many more plants scheduled to be built in the next decade. Honestly, the real story of the steel industry is a much more compelling analogue. The major domestic steel producers neglected investment in new technology and thus charged high prices for the labor intensive steel they produced. Imported steel was cheaper, but it was low quality. Nucor, which at this point was just a steel joist manufacturer that found itself with no good steel supply decided to invest in the new steel making technologies which quickly allowed it to outcompete the established hegemons. It and a few other steel producers that got their start in the 70s revolutionized the industry. Likewise, those who are hesitant to take risks on new green technologies will be left in the dust as their industries get transformed by new-comers who aren't set in their ways.