Electricity: How Ohio Shut Down a Manufacturer and Allows Its Citizens to Pay Too Much

by Tim Danahey, Tim Danahey Show

It is always interesting to speculate on the relationships between government officials and business. The relationships often results in rules and regulations that provide substantial benefits to businesses and leave citizens paying the benefits government bestows. It can also lead to the loss of jobs for workers who do not have the same relationship with government officials. This story talks about relationships and who pays for them.

Ormet Corporation is an Ohio-based company that smelted aluminum in southeast Ohio for fifty-seven years. It was always open as it endured recessions and prospered with American manufacturing. It stayed open to varying degrees during fluctuations in aluminum prices. However, it filed for bankruptcy in February, 2013 and today a skeleton crew of security guards and maintenance personnel ends its operations.

It once thrived and recently employed over 1,000 members of the United Steelworkers in well-paying jobs with benefits. It’s operations were critical to the economy of the depressed southeast Ohio region. Much of its productive capacity has gone overseas … more