In Cincinnati tomorrow, President Obama will announce that he’s appointing Ron Bloom his Senior Counselor for Manufacturing Policy, White House sources tell ABC News.
Bloom is currently Senior Advisor to Secretary of the Treasury Tim Geithner as a member of the President’s Task Force on the Automotive Industry, named to that position in February. He will remain in that position even while he takes on his new task.
Jammie Wearing Fool writes:
The name Ron Bloom is one that we need to start paying attention to. He has a long history of being the negotiating face of unions in a suit. He is a Harvard Business School graduate who has worked for the unions beginning with SEIU for decades. The most recent union he represented was the United Steel Workers (USW) before becoming a part of the automotive team that Obama put together.
The problem is that unions don’t create manufacturing jobs – they lose them. Says who? Says Lawrence Summers, that’s who. (I.e. – Obama’s buddy Larry Summers!)
Another cause of long-term unemployment is unionization. High union wages that exceed the competitive market rate are likely to cause job losses in the unionized sector of the economy. Also, those who lose high-wage union jobs are often reluctant to accept alternative low-wage employment. Between 1970 and 1985, for example, a state with a 20 percent unionization rate, approximately the average for the fifty states and the District of Columbia, experienced an unemployment rate that was 1.2 percentage points higher than that of a hypothetical state that had no unions. To put this in perspective, 1.2 percentage points is about 60 percent of the increase in normal unemployment between 1970 and 1985.
Talk about the fox guarding the hen-house! Obama’s economic ignorance strikes again!