Authors:
Historic Era: Era 2: Colonization and Settlement (1585-1763)
Historic Theme:
Subject:
November 1998 | Volume 49, Issue 7
Authors:
Historic Era: Era 2: Colonization and Settlement (1585-1763)
Historic Theme:
Subject:
November 1998 | Volume 49, Issue 7
In the last quarter-century, the American steel industry—once the very symbol of American economic power—has undergone wrenching change. While steel production has declined somewhat (from 131.5 million tons in 1970 to 105.3 million in 1996), employment in the steel industry has declined much more. There were 457,000 workers in the industry in 1975. Thirteen years later, there were only 169,000. Today there are 162,000.
This painful example of the “creative destruction” of capitalism resulted from two factors. The first was that lower shipping costs (and, often, disguised government subsidies) made it increasingly possible for foreign-manufactured steel to compete with domestic steel in the open American market. Even more important was the spread of “mini-mills,” which process scrap steel instead of iron ore and use electricity to power their furnaces. They were able to produce many kinds of steel far more cheaply than the oldline steel mills dating from the Carnegie era.
While brutal for both the steel-workers who lost their jobs and the stockholders who had to write off billions in assets, the result has been an American steel industry that is once again as efficient, and profitable, as any in the world.
But, if it’s difficult to restructure a great industry, it is, at the least, equally hard to start one from scratch.
Metal has been used by human beings since at least 7000 B.C. But the metal was copper, not iron. Iron is almost never found in the pure state because it is highly reactive (the reason it rusts). Further, it has a high melting point. So separating pure iron from other elements requires both very high temperatures for melting the ore and massive hammering techniques for expelling the other elements. While artisan-ready copper can be obtained with technology available to any Boy Scout troop, iron requires an industrial enterprise.
But, once the techniques were developed, by about 1400 B.C., iron’s superiority as a material was decisive, and it quickly became indispensable to civilization.
When the first settlers arrived in what is now the United States, they had no choice but to import all the iron goods necessary to carry on life as they knew it. This made iron and the things necessarily made from it—horseshoes, pots, nails, weapons, plows—extremely expensive. The New World, after all, was a full two months’ upwind sailing from the nearest iron foundry.
That state of affairs did not continue for long. Indeed, what is perhaps most remarkable about the early days of the American iron industry is just how very early they were. Only 11 years after the Arbella had sailed into what would become Boston Harbor, John Winthrop the younger headed back to England to arrange for the creation of an ironworks in his adopted land.
The elder John Winthrop, a Puritan lawyer as well as a landowner, had agreed to become the first governor of Massachusetts and sailed on the Arbella. It was aboard her that