Nationalization

I realize the news media has to struggle to report on everything these days with some policies seeming to change daily, but I am nonetheless surprised and disturbed by the lack of reporting or commentary on the recent deal between Nippon Steel, US Steel, and the US federal government. It is, at the very least, a step toward nationalization of the United States steel industry. Granted, it’s not full control, but the US federal government seems to have the right to veto

reductions in Nippon Steel’s capital commitments in the national security agreement; changing U. S. Steel’s name and headquarters; closing or idling U.S. Steel’s plants; transferring production or jobs outside of the U.S.; buying competing businesses in the U.S.; and certain decisions on trade, labor and sourcing outside the U.S. (From AP)

To the extent that these things are issues—unpredictable—the new firm is nationalized. Again, not fully (the resulting company is largely a Japanese company after all), but still it’s a clear step toward nationalization. What to make of this?

The Republican Party hasn’t been a free market party in ages (if ever), despite claims to the contrary, so it’s not like the deal has Republicans giving up a part of their standard platform. But it is—or should—nonetheless be disturbing to everyone, especially libertarians. It takes a private company out of the free market, where it could act as it sees fit (important actions that were previously permissible without it, now require the consent of the government). In the process, it increases state power in an arena that is somewhat shocking.

Let’s be clear where the increased state power actually lies. The US was set up to be a classically liberal republic in the image of a Lockean regime. Key to that is a legislative body that is the heart and soul of the government. It is the legislature that is meant to make laws and determine the path of the state. The executive is only meant to carry out the day to day running of things per the rules set by the legislature. That is not what we have.

We now have a legislative body with all of its members so caught up with staying in office that they fear taking any stand (as that might mean some voters would oppose them). It has thus ceded power to the president. That started decades ago, but we have moved more and more toward an imperial presidency. I applaud the “No Kings” protests but do wish we had more of them—and sooner. Hopefully, we’ll have more going forward. We should role back the powers of the president any time we can—such protests would have been worthwhile during all presidencies I can remember and certainly since George H.W. Bush. (Really, back to FDR or further.)

Meanwhile, nationalizing the steel industry to whatever extent we have, means giving the president (Trump now, whomever next*) power over a huge company that should be free of government interference. And our immediate situation is especially worrisome: our president may have just started a war immediately after nationalizing the steel industry. That seems especially worrisome.

*ADDITION: Per the AP, 6/26/25: it seems Trump maintains the stated powers while president, but future presidents will not; instead they will reside with the Treasury and Commerce Departments.