Steel industry excess capacity crisis

Government-backed steel mills export at below-cost prices, dragging the market to the lowest common denominator. References *Boston Globe* coverage of unfair Chinese steel competition from morning of lecture.

Anybody know what the tragedy of the commons is? This guy talked about how everything reduces down to the lowest common denominator. So China builds a huge steel industry, they can't eat all the steel themselves, they want to export it, it goes off into the market, and the government's backing it so they lower the prices. I read about the unfair competition of the Chinese steel this morning in The Boston Globe — it's on page two, or in the business section somewhere. So, getting back to the lecture, total quality management.