So, what would have happened if we had outsourced our steel production to Japan in the 1920s when we were still friends?
That’s the part of globalization that these analysts fail to consider.
That probably wouldn’t happen because of the resource base here. For example, we import that vast majority of our coffee because the resource bases are different. If you had a gov’t that was more friendly in terms of issuing permits, leases, etc., industry would flourish here, including steel. The ore in MN, the coal in WV and PA, simply make it possible to compete provided the technology is implemented. Distribution costs from Japan aren’t trivial, plus Japan has to import most of its raw materials (e.g., ore, coal, etc.). Lower business taxes here and ease up a bit on permits and you’d see a rush of Pacific Rim countries into the US that would make your head swim. Gov’t policies have kept that from happening and high unemployment/underemployment is the result.