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Austrian Steel Producer Builds a Plant in Texas

Written by Gary North on July 11, 2013

Why would a huge steel production company build a plant in Texas?

First, Texas has no labor unions to speak of.

Second, America has cheap natural gas. With energy cheap, the USA has an advantage.

To take advantage of this, America needs free trade. So does Austria.

Will free traders in America pressure the federal government to impose an export tax on this Texas-made steel? No. Why not? An export tax has the same effect as an import tax. It reduces trade. It makes customers pay more taxes to Uncle Sam. So, why shouldn’t opponents of free trade call for export taxes? But they never do.

Anti-trade Americans never say this publicly: “We want a bigger federal government. Bigger government and higher sales taxes will make us richer.” Yet that is the logic of their position.

Most labor unions are anti-free trade. But so are millions of people who call themselves conservatives. I don’t know why. Tariffs are sales taxes. Why do we need more sales taxes?

How about Internet sales taxes on all purchases of digits stored on servers outside the USA? Would that be a good idea? “Tax off-shore PDFs! Save American jobs!”

If this makes no sense to you, you may be a latent free trader. Don’t worry. It’s not biological. There is no free trade gene.


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7 thoughts on “Austrian Steel Producer Builds a Plant in Texas

  1. Nellie McConnell says:

    Obama is closing the coal mines and our government is allowing to many foreign countries to build or buy plants here. This is a security risk! We need to help the American citizens. Stop refugees and illegals. This is costing our country to much money that Obama is borrowing from foreign countries. Maybe Austrian?

  2. len perkins says:

    Free trade is a mis-nomer.
    So called free trade and fair trade rarely exist together.
    A high standard of living cost more.
    When an economy with low standard of living is allow to compete unregulated, it will drain the higher economy of income thereby lowering that standard of living long term.
    Granted, unfair free trade has short term polital and economical advantage for some people.
    As it is now, we further oppress those who are forced to work for low wages.
    Only free people can have free trade that is fair.
    Do you honestly want to know the truth?

  3. This article should be required reading for every school kid. They will all be consumers some day and should not be kept in the dark, even if their teachers are union members.

  4. Seymour Kleerly says:

    Maybe they want to take advantage of the weak regulations in Texas that led to the recent DEADLY PLANT EXPLOSION!

  5. Seymour Kleerly says:

    Kids should also learn to never put in quotes a Propaganda message fabricated from the other side which this article freely does.

  6. Wonder what sort of plant? Mini mill or a basic steel operation?

  7. David in MA says:

    An ingenious way to bring foiegn workers into the country
    without the pesky immigration problem.
    Immigration by employement, believe it.