Restructuring: The Politics of Disinvestment
There were hopes after dips in May and June that the trigger-price mechanism was having some effect. . . . But the July results indicate it just is not so.
Edgar Speer Chairman, U.S. Steel
Our salesmen tell us there are a million and one loopholes in the scheme.
Executive of the Republic Steel Corporation
When governments subsidize inefficiency, the follies tend to compound themselves.
Ronald E. Muller
With annual sales of nearly $40 billion, exceeded only by the oil and automobile industries, in 1977 the domestic steel industry still played a dominant role in the U.S. economy. Despite its continued economic importance, the industry's future prospects looked grim. Imports had already forced a number of major plant closings; in the fall of 1977, for instance, shutdowns in Lackawanna, Youngstown, and Johnstown added another 12,000 steelworkers to the ranks of the unemployed, and policymakers felt compelled to take more drastic actions against further economic dislocations in the industry. Following another round in the continuing political struggle between free traders and protectionists, the national government responded to the crisis in steel with "The Comprehensive Program for the Steel Industry," a kind of industrial policy for steel. The program called for easing