“Nippon still has not provided any true guarantees that our jobs, wages or benefits will be protected beyond the expiration of our current agreements in 2026,” said a union statement last month."
How much can a company make a guarantee on future demand (and future revenue)? Sure a company should be doing their best to make good forecasts and to set aside enough of present revenue to fund benefit obligations. The present administration as well as the Trump campaign are both saying "we should not sell this US company to a foreign entity" but how would that help?
How could the government help the employees and the company transition to remain viable in a changed global steel industry? I'm curious about what programs could even be set up that don't have unintended consequences. I suppose you could do what some foreign countries are accused of doing, which is just printing money to pay people to keep making things for which there is no demand, but that is setting things up for future disaster. Could some kind of fund for industry transition be set up?
I think unemployment insurance was intended to kind of do this, but in practice it doesn't; people don't seem to use unemployment insurance
en masse to transition between industries, nor is the insurance able to explicitly provide the things someone would need to make such a transition (that is, it just provides money, but if there are no affordable training programs, then what good is that money?).
I wonder what kind of policies could be made to help the economy be more flexible, rather than trying to "protect" existing industries and keep them going when there is no demand. The US culture to date seems to be just try and let "the invisible hand" sort it out, but that is really painful for many individuals even though the "average" economy does handle it. So either we keep the "just in time" philosophy of operating with no margin, and prices are low, or we accept things costing more (directly or indirectly through taxes) to provide a reserve buffer.
Presently our policies don't really have a reserve buffer; even our "reserves" are just-in-time in that they are funded by present tax revenue so that if there's a drastic enough shock then those reserves fail. And in fact, some political groups see a surplus and scream, because they see that as "waste", when having a surplus is literally, physically, the
only way to mitigate a supply disruption - especially when such a supply cannot be ramped quickly.