Pandemic Aftermath for USA and India!
Are the worlds top steel manufacturers’ feeling the tremor?!
As the COVID-19 has stalled all intercontinental operations, the demand for steel is evaporating and this has created a major havoc within the industry; thus an injection of liquidity and temporary resolutions are required to keep the prices stable.
Steel is the driving force behind the American innovation and is essential to the health of its economy. ArcelorMittal has temporarily suspended its dividends as the Luxembourg-based steel-and-mining company reported a quarterly net loss of $1.12 billion.
A harsh prospect of layoffs is being considered by many companies to cut the costs and allow them to stay afloat. The nation’s second largest steel maker has laid off 1,545 workers at its Great Lakes Steel works on Zug Island, south of Detroit. Furthermore, US Steel has also closed its tube mills in Lorain, Ohio and in Lone Star, Texas.
Garry Works in Indiana is also another name which has seen its furnaces idled just before the pandemic due to cost cutting measurements. Continuous layoff operations are accelerating the way to black pit for many households. This will have greater socio-political consequences for the upcoming generations and will create a bigger socio-political chaos for the cosy nation
A big catastrophe for the working class is on the way as the federal government is planning to end the $600 weekly unemployment benefit by the end of July. The Congress has clearly decided to leave people without work, money and alone in this harsh period for the whole world.
However USA is no different from India where the poor class is only being offered a survival kit of monthly rations and limited liquidity to buy essentials; nothing has been done to revive and provide liquidity to businesses that actually create jobs for the labour class. Prime Minister Modi’s announcement a month back to give 20 lakh crore rupees to its nation was actually a sham as no businesses stakeholders have seen that money coming into their pockets to run factories, retail outlets and other units.
Modis’ early precautions protected lives which were impressive and indicates his attitudes towards humanity but definitely his policies regarding money management are out of context. In my opinion it is fundamental to offer help to labour and poor class but at the same time support for countries’ businesses is a MUST to put things on track. There is no point in printing cash; we need to create industry, infrastructure and a transparent cycle in such times.
Actually this time represents a very big opportunity for India to clean itself from its long, lengthy bureaucracy and corruption which will allow investments from foreign companies who are willing to invest for the sake of cheap labour and land.
World’s investors are shifting their eyes towards India as China has been boycotted and its shameless behaviour has put lives on risk. China is the largest producer of steel which, right now, also represents a burden for the country as most of its steel is sitting in warehouses without any hope of shipments.
World’s greatest working country has lost its appeal to foreigners for its cringe worthy national policies and release of COVID -19.