Macroeconomics: UK economy, IB Economics

Nils Pratley argues that the decision to shut the blast furnaces of Port Talbot in favour of electric arc furnaces is short-sighted, in removing the only way that the UK can manufacture virgin steel, and places and inordinate amount of faith in global supply chains, both in supplying scrap steel and in offering us the prospect of buying virgin steel on global markets. 

There are news emanating from Wales, with fears that Tata Steel are going to shut their Port Talbot blast furnaces with a significant negative effect on the region. Negative multiplier effects, anyone?

Confirmation that Tata is planning to shut both blast furnaces at Port Talbot, making three-quarters of the workforce redundant, that's 3,000 workers. 

It will be a hammer blow to the town, and trigger a large negative regional multiplier effect. It will be interesting to see the policy response of both the Westminster and the Welsh governments. Will they opt for an interventionist response, and if so , what form will it take?