Why Shouldn't a Japanese Company Buy U.S. Steel? | Potomac Watch Podcast: WSJ Opinion

The White House demands close scrutiny of a $14 billion acquisition by Japan's Nippon Steel, but is this merely political and union posturing? After all, Japan is a close ally, and the Pentagon only uses a fraction of annual U.S. steel production.
0:00 Why Shouldn't a Japanese Company Buy U.S. Steel?
6:54 The Decline of U.S. Steel
Photo: Bloomburg
Read ‘Potomac Watch’ column: www.wsj.com/news/author/kimbe...
Follow ‘Potomac Watch’ on Twitter: / kimstrassel
Subscribe to WSJ Opinion: bit.ly/3PovNsz
More from WSJ Opinion:
On site: www.wsj.com/news/opinion
On Twitter: / wsjopinion
On Facebook: / wsjopinion
#WSJOpinion #WSJ #PotomacWatch

[@timeglass777]

I still don't know if steel is critical in warfare. In time of peace, we don't manufacture massive amount of weapons. But what if there is a large scale war that US is involved? Reviewing WWII, one of the main reasons that Allies won was the immense manufactory power of US. US "provided almost two-thirds of all the Allied military equipment produced during the war: 297,000 aircraft, 193,000 artillery pieces, 86,000 tanks and two million army trucks". In 1942, the average number of tanks that US produced per month was 10,674. Germany made only 256 tanks per month. In recent years, US only built 20-40 tanks a year. Of course, the demand is low for steel now. But what about an unforeseen/unexpected war like WWII in the future? Will it demand large quantity of steel even with advanced technology? I would like an answer. BTW, Kia is Korean, not Japanese car.

[@Dmindthinker011]

Agree 100%. I think the problem with economist sometimes is that they only look at things in regards of economics. They don’t look at things in regard of national interest or safety. It’s just simply not a good idea to license out some things to other countries. We learn that with oil. We learned doing Covid it’s not a good idea to be reliant on China with a medical supplies. And because of semiconductors with Taiwan, we are trying to bring some of that back to America. By the way, just because we are allies today doesn’t mean that we will be the case 10 to 20 years from now. For example, when Nixon open up trade with China, it is not the same China now it was then.

[@big9488]

America doesn't have that same power. Mostly Everything is made over seas

[@nuzuk]

@@Dmindthinker011Not only that what these plants put out is not even half of what they could if fully staffed.

[@michaelbodine6142]

VERY STRANGE !! $14.1 billion offer. Yes Potomac Watch.

[@anikaparker1077]

11:34 The goal is to increase the profits of shareholders. But that's not what the union wants. The union wants to increase their own wages and benefits. 😡The audacity of workers. They are more concerned about their own wages, benefits and families, than they are concerned about profits and returns for shareholders. How dare those workers🤬

[@anikaparker1077]

I have a suggestion. Rather than decrease wages and benefits, why not reduce profits taken by stockholders. Or perhaps share the profits in such a way that everyone can take care of their families.

[@K0nc3pt10n]

Unions made US Steel uncompetitieve and lost money for the owners i.e. shareholders. The executives have the responsibility to get the best deal for the owners of the company, not the workers. Maybe if the union that supposedly represents the workers bent a little and had a more long term view about wages and benefits of the workers, the workers wouldn't find themselves in the position of uncertainty.

[@anikaparker1077]

@@K0nc3pt10n Maybe the executives, owners, and shareholders can afford to take a little less profit. I don't know, but how many millions of dollars do these executives make? What do their benefits packages include?

[@K0nc3pt10n]

@@anikaparker1077 I'm a shareholder. I'm a middle class American. I hold US Steel through my 401k. How much less should I retire with? The executives get paid high salaries to protect my interests along with the other shareholders. Employees get paid a fair wage to do their job. I work at a corporation. I don't dictate to my shareholders how much they should make. I don't dictatate or cry about how much my CEO makes. His decisions keep us both employed. If I feel I'm not making my fare share, I'll leave. It's a free market.

[@gn7867]

Huh?? Nippon steel is offering way better conditions for the workers……😑😑😑😑😑