The Pennsylvania-based U.S. Steel company recently agreed to be purchased by the Tokyo-headquartered publicly traded company Nippon Steel.It will encourage other foreign companies to invest in the U.S., creating wealth and new job opportunities, and further shoring up the U.S. economy, particularly amid inflation worries.And yet, in our age of government shoving its fingers into everything, President Joe Biden announced that he opposes this purchase for muddled, misguided reasons.
The Trump steel tariffs are the latest expression of this attitude. But one stupid policy move doesn't justify a second. Furthermore, U.S. Steel, despite its historic significance, is no longer a major player in the steel industry and could benefit from Nippon Steel's investment and technology enhancements.
The business practice of buyouts is not inherently bad. Nippon Steel will save U.S. Steel and make it better through new ownership. For all the protectionist handwringing, you'd think policymakers would recognize that this buyout will save the company from eventual bankruptcy without the deal and might secure the jobs of U.S. workers.