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From: acton@ubc-cs.UUCP (Donald Acton)
Newsgroups: can.politics
Subject: Re: Eastern Myopia (steel prices)
Message-ID: <906@ubc-cs.UUCP>
Date: Thu, 20-Dec-84 23:45:16 EST
Article-I.D.: ubc-cs.906
Posted: Thu Dec 20 23:45:16 1984
Date-Received: Fri, 21-Dec-84 06:45:01 EST
References: <854@ubc-cs.UUCP> <653@watcgl.UUCP> <874@ubc-cs.UUCP> <10346@watmath.UUCP>  <1284@dciem.UUCP>
Reply-To: acton@ubc-cs.UUCP (Donald Acton)
Organization: UBC Department of Computer Science, Vancouver, B.C., Canada
Lines: 24
Summary: 

In article <1284@dciem.UUCP> mmt@dciem.UUCP (Martin Taylor) writes:
>
>If Canadian steel is so overpriced, why do the Americans have to resort
>to various mechanisms to prevent it competing with their steel?  

American steel must be even more overpriced then Canadian steel is. Both
Canada and the US place restrictions on imported steel, thus if the steel 
industries were truly competitive they would not need protection. 

As an example consider the Canadian forest industry which must compete 
on the world markets without the "benefit" of protectionist tactics. 
According to articles in the Vancouver Sun last night the Canadian 
forest industry is producing in record amounts, they are doing it 
(in BC anyway) with 20% fewer people and they are selling these products
at break even prices.  Why don't the steel and auto industries adopt 
these sort of practices instead of screaming for quotas and restrictions
that result in the average person needlessly subsidizing these industries.
Arthur Laffer (Ph.D. economics, author of the Laffer curve and according to 
George Bush advocate of voodoo economics) estimates that the average 
North American car is overpriced by $2000 due to restrictive trade practices.

     Merry Christmas everyone, and see you in the new year.

            Donald Acton