Sunday, September 06, 2009

So How Do You Spur Manufacturing While Increasing Costs?

Specifically, energy costs.Obama names Treasury official to spur manufacturing - Yahoo! News

So does this guy have credentials in manufacturing? Did he ever run a business or work for a manufacturing company?
Prior to joining the Obama administration, Bloom was a special assistant to the president of the United Steelworkers Union. His responsibilities included the union's collective bargaining program.

Prior to joining the Steelworkers, Bloom was one of the founding partners of Keilin and Bloom, an investment banking firm, where he was involved in numerous transactions on behalf of the Steelworkers, the Auto Workers, the Teamsters, the Air Line Pilots Association and other unions.

Before founding Keilin and Bloom, Bloom was a vice president at the investment banking firm of Lazard Freres & Co. where he specialized in analyzing, structuring and raising financing for union-led employee-ownership transactions.
So I guess manufacturing will look like the steel industry. Or the auto industry.

(People still try to claim he isn't a socialist.)

So he wants to pass "Cap and Trade" which even it supporters admit will raise energy prices. How does that "spur manufacturing?"

Since employer-supplied insurance will have to expand to become a "qualified plan" the cost will go up. (Or businesses will pay the penalty and dump employees on the open market - or the public option.) How does that "spur manufacturing?"

No new power plants (green or otherwise) are being built to supply the power demands... The EPA is killing off wind-power proposals... How does that "spur manufacturing?"

Hope is a fine thing. Realism is generally a good thing when it comes to policy formation.

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