Drudge Retort: The Other Side of the News
Tuesday, August 20, 2019

Pittsburgh-based United States Steel plans to halt production at a Michigan plant, resulting in a temporary layoff of up to 200 workers, CNBC reports.

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Old News - these were announced in June. I think it was on here. It is one of several being shuttered the tariffs hurt more than helped after the initial surge. This was one of the plants mentioned. I think US Steel is actually shuttering two plants.

#1 | Posted by GalaxiePete at 2019-08-20 03:48 PM | Reply

Promises Made - Promises Kept...

OCU

#2 | Posted by OCUser at 2019-08-20 04:11 PM | Reply

@#1 ... Old News - these were announced in June ...

I missed that.

This article is about the layoffs actually occurring, that's probably why the date was today.

thx.

#3 | Posted by LampLighter at 2019-08-20 04:15 PM | Reply

It's starting.

#4 | Posted by fresno500 at 2019-08-20 05:09 PM | Reply

@#4 ... It's starting. ...

While retail is looking very good, manufacturing, and rail and truck shipping are starting to show some weakness.

Perhaps that is why Pres Trump is looking at a tax cut for the middle class (I wonder how much of this one is going to go to the wealthy?)

Perhaps that is why Pres Trump is badgering the Fed to lower the rate by 100 basis points?

#5 | Posted by LampLighter at 2019-08-20 05:14 PM | Reply

It's starting.
#4 | POSTED BY FRESNO500

Women usually just say, "I started".

#6 | Posted by SheepleSchism at 2019-08-20 05:29 PM | Reply | Funny: 1

#6 lol

On a serious note, Gary, Indiana is next.

#7 | Posted by lfthndthrds at 2019-08-20 05:36 PM | Reply | Newsworthy 1

Can't make a trade war omelet without cracking a few hundred eggs.

#8 | Posted by snoofy at 2019-08-20 06:05 PM | Reply | Newsworthy 1

Please explain how the tariffs caused U.S. Steel to lay off workers. That doesn't make any sense. The overall economy would be the cause of this, while Trump is bragging about a "great economy," demand is down and so less steel is needed.
IMHO, and I am no economist by any means, we are getting ready to have to deal with a recession, let's just hope it's not as severe as the last Republican Recession. Tax cuts for the rich ALWAYS bring about recessions because they actually reduce demand for goods and services. Higher taxes motivate the wealthy to try to avoid those taxes by expanding industries and hiring more people. Lower taxes just motivate them to take profits at the most beneficial time (for themselves).

#9 | Posted by danni at 2019-08-20 08:47 PM | Reply | Funny: 1

Go fight against China some more!

Seriously, at this point in time, Americans have to be the stupidest people walking around on this planet.

#10 | Posted by J_Tremain at 2019-08-20 08:49 PM | Reply

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Thanks Trump!

#11 | Posted by hatter5183 at 2019-08-20 08:49 PM | Reply | Newsworthy 2

"Perhaps that is why Pres Trump is badgering the Fed to lower the rate by 100 basis points?"

Trump is trying to convince the Fed to put his reelection chances ahead of our economy. Lower interest rates more and then what the hell are you going to do if we really face another 2007? You won't be able to lower interest rates further, the Fed will be out of tools to work with. Trump puts his own reelection chances before the economic security of most Americans.

#12 | Posted by danni at 2019-08-20 08:50 PM | Reply

USS has opened and expanding in other plants. I do business with USS and they are investing in other plants.

again bogus, misleading article from the left

#13 | Posted by Maverick at 2019-08-20 10:17 PM | Reply

I do business with USS and they are investing in other plants.

That's good. One of our customers.

#14 | Posted by REDIAL at 2019-08-20 10:25 PM | Reply

Lower interest rates more and then what the hell are you going to do if we really face another 2007?

Dropping rates to near zero is what caused 2007.

#15 | Posted by REDIAL at 2019-08-20 10:27 PM | Reply

Hey. This should help America's independence from China and other nations, right?

Come on Trumpublicans.

Spin this for us.

#16 | Posted by ClownShack at 2019-08-20 10:33 PM | Reply

US Steel stock less than half of a year ago. Winning.

#17 | Posted by REDIAL at 2019-08-20 10:35 PM | Reply

"Spin this for us.

#16 | POSTED BY CLOWNSHACK "

Loves him some cheap Nikes and Apple products made by slave labor, poltical prisoners,child labor, while polluting the planet more than Western and Wester Pacific nations, and feeding the $300 billion quarterly trade deficit allowing China to expand their cldar militaristic intentions while keeping manufacturing jobs away from the USA.

There you go.

#18 | Posted by goatman at 2019-08-20 10:42 PM | Reply | Newsworthy 1

Funnyh now the China lovers accuse the right of being Russia lovers. LOL

#19 | Posted by goatman at 2019-08-20 10:43 PM | Reply

#9 These layoffs may have nothing to do with tariffs, but they could be linked. Tariffs on steel imports raise the cost of US manufacturers that use steel. Some of those manufacturers compete with foreign manufacturers so the lose market share, the increased cost to consumers will reduce their sales in the US. This can cause lower demand for US made goods and then lower demand for US made steel.

Then you add in retaliation tariffs and it gets worse. Tariffs are a tax on consumers, which reduces demand for goods and the jobs that make them. Every righty will tell you this is how income tax works, but forget it works the same for tariffs.

That said, the US should push back against China. The smart plan is to trade with others more and China less, which is what TTP is doing now, except the toddler in chief bailed on that because it was a woman's idea.

A Recession was coming, but cadet bonespurs has made it sooner and worse. Now he is crying to the Fed to save the US economy from his folly.

Who could have suspected a failed businessman would find running a country so complicated.

#20 | Posted by bored at 2019-08-20 11:03 PM | Reply | Newsworthy 1

No surprise that a dullard trust fund kid who repeatedly failed at business has managed to increase the China US trade deficit, not decrease it.

And it will get worse now that China has the capability to make big ticket items like commercial jets itself.

The only solution I see is if the US invests heavily in automation and figures out how to make goods with near zero labor costs. That will help with the trade deficit, but it won't help with jobs. Silicon Valley figured out how to provide services at scale with low labor costs, it can be done for goods.

The most common jobs in America are going away in a decade or so. Truck drivers and low tech manufacturing jobs will be gone, so will a lot of retail. I don't know what will replace them.

#21 | Posted by bored at 2019-08-20 11:16 PM | Reply

"USS has opened and expanding in other plants. I do business with USS and they are investing in other plants.
again bogus, misleading article from the left
#13 | Posted by Maverick at 2019-08-20 10:17 PM"

USS might be doing that as a reaction to last year's steel demand.
However, USS also is trying to produce more steel with fewer furnaces.
Blaming "the left" and claiming the article is "bogus" will not change economic realities.

marketrealist.com

#22 | Posted by TrueBlue at 2019-08-21 01:33 AM | Reply

#22 | Posted by TrueBlue, Why not ask what kind of plant was closed? How old was it? The newer mills are smaller and more economical to run. Seems there are a bunch of small newer mills that produce boutique products, like structural steel or sheet metal built down south in the last decade. Wasn't USS announcing a new billion dollar+ plant a few months ago? Nostalgia has no place in business. The rule is adapt or die.

#23 | Posted by docnjo at 2019-08-21 06:18 AM | Reply

I do business with USS and they are investing in other plants

Certainly there should be a press release or article you can cite other than your own anecdote.

#24 | Posted by JOE at 2019-08-21 07:36 AM | Reply

Re: #23

Sure, those are all interesting questions and the answers to those questions would describe how the steel industry is coping/adjusting to the economic realities. However, those questions/answers completely avoid what is described in the link I posted (you read it, no?). It had a considerable amount of useful info, but to overly summarize it: the steel industry now (unlike last year's euphoria) is facing reduced prices and demand mostly because of world recession concerns. Whether those are real concerns or paranoia is immaterial as the result is the same. It might be useful to examine the reasons for those world recession concerns.

BTW, nostalgia has nothing to do with the current economic realities!

#25 | Posted by TrueBlue at 2019-08-21 07:40 AM | Reply

When states compete for factories and jobs the country loses. Trading 200 well paying jobs in one state for 200 lower paying jobs in another plus tax cuts and exemptions is a net loss for the country

#26 | Posted by hatter5183 at 2019-08-21 08:28 AM | Reply

www.aar.org

Rail traffic down from last year!!!. Its a recession boys and girls! Sell all your stocks and move to greenland!

#27 | Posted by mutant at 2019-08-21 08:41 AM | Reply

"Loves him some cheap Nikes and Apple products made by slave labor, poltical prisoners,child labor, while polluting the planet more than Western and Wester Pacific nations, and feeding the $300 billion quarterly trade deficit allowing China to expand their cldar militaristic intentions while keeping manufacturing jobs away from the USA."

So, I have yet to read a single post by you which would encourage the penalization of any American corporation for doing exactly what you say. Personally, I have believed that all of their products should be subject to big tariffs for the last 30 years. Trump won the last election because he came out for tariffs which is completely not a Republican concept. Democrats and Bernie Sanders have talked about tariffs for decades. Free trade is really a Republican idea. Nike is the perfect example, which I have talked about here many times, they cost Nike 2 to 3 dollars to produce but then they bring them here and sell them for $100.00. They have been doing this for decades.

Now you want to talk about the trade deficit, you're a bit late to the party. I've been here talking about it for, literally, decades. BTW, Trump's family still sells products manufactured in China so they should just shut up about the trade deficit, they're part of the problem.

#28 | Posted by danni at 2019-08-21 09:03 AM | Reply

"Why not ask what kind of plant was closed? How old was it? The newer mills are smaller and more economical to run."

What a dishonest post. The truth is demand for steel is down. You don't want to admit that because to do so would be an admission that the economy is shrinking and that wouldn't bode well for Donald Trump's Presidency. Be honest, your economic opinions are commanded by the Trump reelection campaign.

#29 | Posted by danni at 2019-08-21 09:06 AM | Reply

#29 | Posted by danni Yet those small market driven mills are profitable, big mils that produce many gauges and grades of stock have to maintain all that equipment. The demand for virgin steel is down, but recycled steel is going gangbusters. It is simply cheaper to produce and requires less investment.

#30 | Posted by docnjo at 2019-08-21 11:52 AM | Reply

"Who could have suspected a failed businessman would find running a country so complicated."

Who could have predicted that a businessman who declared bankruptcy 6 times might not know what he is doing when it comes to the world's largest economy?

#31 | Posted by Gal_Tuesday at 2019-08-21 12:27 PM | Reply

#29 | Posted by danni Yet those small market driven mills are profitable, big mils that produce many gauges and grades of stock have to maintain all that equipment. The demand for virgin steel is down, but recycled steel is going gangbusters. It is simply cheaper to produce and requires less investment.

#30 | POSTED BY DOCNJO

No, it's not. There's been a small bump in steel output in the US but the demand for steel has crashed as the price went up.

Applications to import steel are way up but the actual steel coming in is still down. US production hasn't replaced it.

#32 | Posted by Sycophant at 2019-08-21 12:35 PM | Reply

Please explain how the tariffs caused U.S. Steel to lay off workers. That doesn't make any sense. The overall economy would be the cause of this, while Trump is bragging about a "great economy," demand is down and so less steel is needed.

#9 | POSTED BY DANNI

This is an "I told you so" moment."

Part of it is a global slowdown overseas and part of it is simply the stupid economic policy of putting tariffs on basic resources like steel.

By ditching Chinese steel, the cost of steel in the US has gone up. So projects requiring steel have gotten more expensive here. Some building projects were scrapped, people planning to build have either scaled back or decided against doing so. Manufacturing also took a hit as the cost of steel makes overhead higher and the products less expensive abroad.

Consumer goods products requiring steel also became more expensive meaning consumers couldn't spend the extra money elsewhere.

I mean, why the hell would I manufacture a steel product in the US when I can make it in Canada or Mexico with cheaper steel? I'm far more competitive then.

And of course there are tariffs on us from China now because of our tariffs. US Steel has lost literally 70% of its market value since Trump announced foreign steel tariffs 16 months ago.

Literally EVERYTHING we said was going to happen has happened EXACTLY as we said it was going to.

How did we know it would happen? Because we tried it before under Bush and the exact same damn thing happened.

#33 | Posted by Sycophant at 2019-08-21 12:47 PM | Reply | Newsworthy 2

#33 | POSTED BY SYCOPHANT

Credit is where it's due. You do an excellent job of explaining the economic pitfalls of tariffs.

#34 | Posted by JeffJ at 2019-08-21 12:53 PM | Reply

Just read this. "New manufacturing jobs?" At $12 and hour and change replacing former living wage jobs.

'American Factory' Shows What Happens When One Multibillion Dollar Chinese Company Opens Shop In An Ohio Town

www.forbes.com

#35 | Posted by AMERICANUNITY at 2019-08-21 04:17 PM | Reply | Newsworthy 1

#35 The Obamas' First Big Anti-Trump Statement of 2020

The former first couple's Netflix documentary offers a quiet response to Trump's promises to reinvigorate the industrial heartland.

www.politico.com

#36 | Posted by Gal_Tuesday at 2019-08-21 04:27 PM | Reply

Community organizerss and old men that touch kids can run the country much better. The american steel mills will appreciate the toucher in chief biden in 2020.

Bethlehem steel canned all of their pension obligations in 1995. FACT!

#37 | Posted by mutant at 2019-08-21 09:15 PM | Reply

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