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Ender
Guest
The “with fewer men” observation is relevant: the unions have always fought layoffs caused by new technology, which tends to stymie innovation. Do you really believe that US steel companies didn’t understand the benefits of the basic oxygen furnace? Why do you think they didn’t turn to new, more efficient techniques? If poor, start-up industries in Germany and Japan could build them, why couldn’t world leading companies in the US do it?By the end of the 40s Germany and Japan were recovering and their heavy industry was being rebuilt from the ground up. The German and Japanese steel industries chose to go with a new technology called a basic oxygen furnace. These furnaces could produce as much steel and as high of quality as the blast furnaces but with fewer men and in a shorter amount of time.
They could easily have been staved off had US companies adopted the same technology the rest of the world was using. Why didn’t they? They had the money, the expertise and the incentive to do so, what prevented them? But there was more. It was bad enough that they were using less efficient processes; their labor costs were also a whole lot higher.The problems were long in coming, but they couldn’t be staved off. America relied on outdated and inefficient technology.
*The U.S. advantage lasted about two decades, during which the U.S. steel industry operated with little foreign competition. But eventually, the foreign firms were rebuilt with modern techniques such as continuous casting*, while profitable U.S. companies resisted modernization. Meanwhile, U.S. steelworkers were given rising benefits. (Wikipedia)
Resistance to modernization and increased benefits … now who does that sound like?
Ender