SB 107-01: Atlasian Steel Act (Rejected)

[WD]

AN ACT
To nationalize the steel industry

Be it enacted by the Senate of the Republic of Atlasia

Section 1. Title

This legislation may be cited as the Atlasian Steel Act.

Section 2. Nationalization

1. All steel manufacturers are brought into public ownership immediately upon passage of this act and shall be placed under the control of an Atlasian Steel Authority.

2. To complete the undertaking as outlined above, the Republic of Atlasia shall establish an Atlasian Steel Authority (hereafter ASA) which shall be comprised of all former privately-held steel companies and shall hold a legal monopoly in these sectors.

3. The purpose of the aforementioned ASA shall be the economization of operations and the modernization of production methods to raise safety and efficiency standards across the country, as well as provide steel at a low cost, prevent competitive waste, and co-ordinate research and development in those sectors.

4. The government of the ASA shall be federal and cooperative. In each region will be established a regional steel authority under a board of directors composed of representatives of labor, the consumers, security, and the environment. The number of labor directors shall be four, and the number of directors for all other constituencies shall be two. Each regional authority will elect five representatives to the national board of directors. Two of the national directors elected by each regional authority shall represent labor, and one each shall represent the consumers, security, and the environment.
 
5. The labor directors shall be chosen by a vote of the steel workers; the consumer directors by a vote of the regional legislature, the security and environment directors by the regional executive at the regional level and by the president at the federal level.

6. The term of a Board director shall be four years.

7. The President shall appoint a Chair of the ASA Board of Directors who shall have no vote unless they are equally divided. The Chair shall serve a four year term.

8. All persons owning any of the aforementioned industry brought into public ownership shall be fairly compensated for the sale of said industries to the Republic of Atlasia.

Sponsor: Western Democrat

The gentleman from Oregon is recognized.

[WD]

This bill will bring under public ownership the steel industry. This is essential to work towards the goal of stabilizing and protecting what is an already weakened and faltering industry. I think every Atlasian can agree that a strong steel industry is essential to a strong Atlasia.

[WD]

I could not agree more with the President about the decline of the steel industry and it’s consequences. To answer the question “why nationalization?”, it is because this is the only option, it is the only choice if we are serious about supporting the steel industry.

Once nationalized, steel industry jobs will be insulated from outsourcing, production can and will exponentially increase, providing and supporting new high paying jobs. Automation will be with us for the foreseeable future and not every single job lost can be brought back, but this is infinitely superior to the status quo. Nationalization is a desperately needed shot in the arm for Atlasian steel. I cannot stress enough; there is no other choice. To those who oppose this bill, what do you suggest as an alternative?

I also want to say that the hyperbolic claims from some Senators that this will move us towards “communism” is complete and utter nonsense. Nationalization is not being pursued for the sake or fun of it, but because self evidently the free market has failed the steel industry. I argue that it is one of the roles of government to correct the errors of the free market and to step in where it has failed, and this is clearly one of those situations.

[WD]

I would like to support this bill, but I believe we need to reduce the usage of steel in general. Producing steel itself releases many carbon emissions, and if we are bringing the steel industry into government ownership, reducing steel production, itself, to deal with this problem would be ideal. If this can be remedied, I would gladly support this bill as I believe steel production can best be reduced by the government and not by the private sector. Also lol at this being communism, if it was communism, I'd never support it, I'm probably actually more capitalist than many of the opponents of this bill, but we won't go there.

I lean against this since if I'm not wrong, this is literally small-scale communism. But I could be persuaded otherwise to support this bill.

I concur with my honorable colleague. Successive Labor administrations have sought to nationalize and nationalize (e.g., taking energy companies under federal control under the Labor Red-Green New Deal). As long as this party stands in the majority, the growth of big government will never end. Nationalization of industry after industry, in this case the steel industry, is a brisk step in the march toward communism.

I am a pretty strong capitalist, but ultimately some issues are bigger than the free market or promoting competition in the market and climate change is one of those issues. It is the most important issue of our time, and dealing with it is imperative, and we are running out of time to deal with it. Sometimes we must put our principles of economic liberalism aside and recognize that sometimes the government does indeed need to intervene in the economy. I agree that we do need to be judicious about when we intervene, because too much intervention can cause economic stagnation, but I do not believe that is where this bill will take us. Also believe me if this was actually communism, I would not vote for it. (Better Dead than Red) Frankly, the post-war period is over, no one is interested in mass-nationalizing anymore. By the 1970s, it had clearly failed and with stagnation setting in, it became clear that nationalizing everything was not the answer, and indeed the neoliberal reforms made to the economy should mostly stay, but there are some exceptions of course. Rest assured that this bill is not going to take us down the path that led to the excesses of the Post-War Consensus.

I agree with much of what you said, and I'm sure you know I am a strong supporter of combatting climate change in any way possible, but I don't see how this is necessary or the only action that can be taken. I would support heavier regulation but I don't think it's at all a good idea to give government a monopoly of the steel industry; it would leave ripe opportunities for abuse and while I'm sure most members of the government, if not all, are honest, it's not a risk worth taking considering all the problems that might arise. I strongly oppose the government taking sole control over steel. I think it's communism, and frankly, even if it's not (which one could argue), it's still a terrible policy that I would have a lot of trouble supporting. I intend to vote against unless the bill is dramatically altered before a final vote.

What do you propose we do to support and help the steel industry then?

[WD]

24 hours to object

[WD]

Objection being raised, a vote is now open on S019’s amendment. Please vote AYE, NAY, or ABSTAIN

[WD]

Aye

[WD]

Let me just say, reforms to trade policy have my full support, but I do not believe it is enough. Simply put, the core cause of the industry’s decline is surging (cheap) steel imports from places like China (specifically targeted towards the Atlasian market) which has greatly damaged the value of Atlasian steel. Our steel industry cannot compete with these unfair import prices and cannot survive these gross market distortions. The damage has been done, but nationalization allows us to chart a new path forward.

The report which I linked mentions specifically how; “The excess capacity plaguing the steel industry stems largely from massive government support for, and direct government involvement in, the steel industry in other countries. In 2011, half of the world’s 46 top steel companies were state-owned, and these state-owned companies accounted for 38 percent of global production”. Quite ironically, the situation the industry finds itself in is in part due to the aggressive government support lended in other countries for their own steel industry. This begs the question, why should we not do the same? Why should we disarm and allow this? If we allow the industry to spiral into its grave this country will be weaker for it. That is not an option. Steel is such an important and vital industry, for both our economic health and for national security, that it needs full government support, backing and management. 

[WD]

Vote on the S019 amendment to the Atlasian Steel Act:

Aye (7): Western Democrat, S019, OBD, CentristRepublican, Kuumo, Tack, Discolovante

Nay (6): West Midlander, Muad’dib, DeadPrez, Spark, North Carolina Yankee, Joseph Cao

Abstain (1): MB

Not voting (4): Dabbing Santa, Pericles, Ishan, Old School Republican

The amendment is adopted, debate resumes.

[WD]

Opening a vote in 24 hours

[WD]

A final vote is now open. Senators, please vote AYE, NAY, or Abstain.

[WD]

Aye

[WD]

Aye (6): Western Democrat, OBD, Discolovante, Kuumo, MB, S019

Nay (9): West Midlander, Dabbing Santa, CentristRepublican, DeadPrez, Spark, Joseph Cao, Ishan, Tack, North Carolina Yankee

Not voting (3): Pericles, Old School Republican, Muad’dib

This bill is rejected.