Monday, March 5, 2018

Strategic Resources


Trump is restoring US capability to defend itself by seeking to increase US steel and aluminum manufacturing. After the Industrial Revolution, the US was in the perfect position to manufacture everything.

We were able to provide military equipment for World War I and World War II, because neither of these wars occurred on US soil. Our industrial infrastructure was not interrupted and we were able to have our automobile manufacturers make tanks and our aircraft manufacturers to make military aircraft. We already had shipyards making ships and we had them make ships for military use.

We had the Atlantic Ocean on our East side and the Pacific Ocean on our West side. Our citizens owned guns and we were able to prevent invasion.

We had developed our own military equipment and weapons and had a century of experience with the War of 1812, the Mexican American War of 1846 and the Civil War of 1861.

We were fully capable of providing weapons to our allies in the early years of World War I from 1914 to 1916 and World War II from 1938 to 1941. The US entered World War I in 1917 and won it in 1918.  We entered World War II in 1941 and won it in 1945.

In 1945, the US faced an expansionist Soviet Union that had gobbled up all the nearby countries to its West including half of Germany. We had an opportunity to address this in 1945, but we didn’t. 

In the 1950s, the US believed it could stop the spread of Communism and our defense policy broadened beyond our ability to protect everybody.  We entered the Korean War in 1950 and ended it with a tie in 1953.  We entered the Vietnam War in 1955 and lost it in 1975.

The US always had a policy of self-reliance until the 1960s. We kept a list of strategic resources and managed our trade policies accordingly. Our Defense Department required our economy to include the raw materials and manufacturing capability to enable us to provide the US military with whatever it needed.

Demand for our peacetime products remained high until the 1960s, when our policies changed to abandon self-reliance. The US stopped mining and timber harvesting due to over-the-top environmental programs.

The combination of inflation from monetizing US debt, the expansion of US government spending, the decline in US productivity, the tyranny of US labor unions and better quality foreign-made products, especially automobiles, created the conditions that would encourage the eventual off-shoring of our manufacturing capabilities.

In 2017, the US imported 26.9 million metric tons of steel.  Top exporters of steel to the US includes Canada, Brazil, South Korea, Mexico and Russia. Trump is calling for a 25% Tariff.

In 2017, the US imported over 6 million metric tons of aluminum. 90% of aluminum used in the US is imported. The EU is now dumping aluminum into the US and our defense-related supplier is operating at 40% of capacity. This prompted the addition of aluminum to the list for a 10% Tariff.

Norb Leahy, Dunwoody GA Tea Party Leader

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