Lori Wallach and Michael Hudson Debate Trump’s Plan to Impose Steel & Aluminum Tariffs | Democracy Now

by Faiz Ahmed last modified 2018-03-06T15:51:56-04:00
"So, what Trump’s policy does is a travesty of protectionism. It merely squeezes. And the pretense of all of this is that if he gives more money to the steel and aluminum companies, they’ll invest more and hire more labor. But they’re not going to do that at all. Not a single new steel factory is going to be built. Not a single new aluminum factory, because aluminum is made out of electricity, and America is a high-cost electricity country, compared to Iceland, where Alcan produces much of its aluminum, in Canada. So, what you’re doing is enabling the steel and the aluminum companies to use their increased profits for share buybacks and to pay dividends, but they’re not going to build new factories. There is not going to be any trickle down. So, Trump has made a travesty out of protectionist doctrine, as well."

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