Real World Economics: Watch Out For Politicians Pandering To Gold Mining

January 13, 2016 Nemes Random

There is a bi-partisan policy consensus among important Minnesota chosen officials: Lets stiff 5. 2 , 000, 000 Minnesota buyers — in addition to hundreds of million others round the country — with larger prices for almost any product that contains steel, in addition to lets endanger jobs in addition to business earnings in steel-using manufacturing businesses, all to placate several thousand ore miners, their own employers plus ancillary business up on the particular Minnesota Iron Range.

That is the concept to take from the Dec. 22 political movie theater in Va, Minn., when Denis McDonough, President Barack Obamas Whitened House main of employees, met with selected Minnesota officials of both parties, together with steel industry execs, and with mine workers and their union leaders.

Just about all seem to concur that declines in the price of steel, and of the iron ore that goes into it, coupled with increasing imports into the country, will be the result of unlawful actions by simply companies or perhaps governments from the other nations. Many agree with 9th District Repetition. Rick Nolan, a Liberal, who has launched legislation to ban just about all steel imports for 5 years.

Now this not only is large and say nonsense, it is dangerous rubbish. But we all live in strange times, whenever extreme unsupported claims finds prepared ears and politicians drop over each other with populist and even xenophobic appeals.

If we actually did ban all steel imports, and even limit all of them markedly, we might be capturing ourselves inside our collective financial foot.

Economics,

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