Tuesday, January 4, 2011

A Cautionary Tale of Protectionism

How protectionism fails states, as told in a Wall Street Journal editorial...

In 2005, at the behest of America's monopoly magnesium producer—U.S. Magnesium of Utah—the Commerce Department imposed antidumping duties on magnesium from Russia and magnesium alloy from Russia and China. Five years later magnesium alloy is in short supply in the U.S., leading to much higher prices than in the rest of the world and a crisis for die casters, alloy producers and recyclers... If the goal was to destroy a U.S. manufacturing industry, you couldn't have come up with a better plan. The North American Die Casters Association says some 1,875 direct jobs and 8,000 supporting jobs have been lost since the 2005 antidumping orders took effect. U.S. magnesium alloy producers have also been stung by duties because they've been priced out of the market and recyclers can't find scrap.

More here.

No comments:

Post a Comment