The Daily How the Election Is Sinking a $15 Billion Business Deal
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Sep 12, 2024 Alan Rappeport, an economic policy reporter for The New York Times, delves into why the Biden administration may block Nippon Steel's $15 billion acquisition of U.S. Steel. He highlights the intertwining of politics and labor as pivotal in this decision, particularly in a crucial election year. Rappeport discusses the history of U.S. Steel, its decline, and the political backlash against foreign acquisitions, shedding light on the complexities of American manufacturing and labor dynamics. The episode reveals how such deals reflect broader economic trends and political strategies.
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U.S. Steel's Rise
- Founded in 1901 by industrialists like Andrew Carnegie and J.P. Morgan, U.S. Steel became the first billion-dollar company in the US.
- It built iconic structures like bridges, skyscrapers, and parts of the UN building, peaking at 340,000 workers around WWII.
U.S. Steel's Decline
- U.S. Steel declined after WWII due to complacency, failing to adapt to newer technologies from Germany and Japan.
- Increased foreign competition, labor strife, and the rise of Chinese steel production further contributed to its decline.
Trump's Impact
- Donald Trump's 2016 campaign focused on American workers, blaming trade deals for their decline and promising to revitalize industries like steel.
- This focus resonated with workers in swing states like Pennsylvania, home to U.S. Steel.