Dear Representative Boehner of Ohio’s 8th District:

On November 13, 2008, you stated:

“Spending billions of additional federal tax dollars with no promises to reform the root causes crippling auto makers’ competitiveness around the world is neither fair to taxpayers nor sound fiscal policy,”

Representative Boehner, this Ohio taxpayer is interested in your concept of “sound fiscal policy.” It is difficult to understand how your, “No,“ on a bailout for the three major US automobile manufacturers is “sound” fiscal policy for Ohio, your district, or the nation. Let’s look at some facts about your district in Ohio. Butler, Darke, Miami, Preble and Mercer counties are all, or in part, within your district. According to the Butler County Department of Development:

“Approximately 80% of North American light vehicle production takes place in Ohio or within 500 miles of its borders. Ohio was also second in the nation with value-added to motor vehicles and parts during the most recently measured period reflecting the continued investment in the state’s motor vehicle industry.In addition to being a major force in vehicle production, Ohio is also a leader in the number of Tier I auto parts suppliers. The state ranks second in the nation with 221 suppliers. Combined with 102 Tier II suppliers in Indiana and 51 in Kentucky, the Tri-state area surrounding the Cincinnati – Dayton region accounts for more than 25 percent of the Tier I suppliers in the United States. The Cincinnati – Dayton region is integral to the supply chain of many auto related firms, with more than 108 out of 614 of Ohio’s motor vehicle industry companies located in the Cincinnati-Dayton corridor.”

Further research in regards to these counties reveals a strong manufacturing presence within your constituency communities and approximately one third of the manufacturing is related to the automobile industry directly. According to the Ohio Department of Development, and prior to the most recent layoffs, GM employs 14,650 Ohio citizens, Ford employs 11,200 Ohioans and Chrysler employs 6,600 from the state you represent. Honda, which has made some heavy investment in your district in recent years, employs 14,000 Ohio employees. These figures do not begin to reflect the employment figures in the Ohio auto industry beyond the three major US manufacturers. Today’s L.A. Times reported:

“The U.S. automakers have appealed to the Bush administration and President-elect Barack Obama for help, arguing that huge losses and crashing sales make emergency cash a necessity. Vehicle and parts manufacturing jobs are concentrated in the Midwest and the South. Collectively, Michigan, Ohio, Indiana, Tennessee and Illinois have more than half the industry’s jobs. Other states with sizable numbers include Kentucky, New York, California, Pennsylvania and North Carolina, according to the Bureau of Labor Statistics.

William Diehl, chief executive of BBK, was quoted in the article stating:

With up to 50% of suppliers "distressed" because of lack of access to new sources of financing and decreased sales, Diehl predicts a "huge increase in supplier liquidations and bankruptcy filings very soon.That would create blow-back for automakers. In February, Plastech Engineered Products Inc. filed for bankruptcy protection. The Dearborn, Mich., molded plastic parts maker employed 7,600 people and had plants in eight states. Last year, it sold $1.4 billion worth of engine covers, grill panels, floor consoles and the like to carmakers, including $200 million in parts to Chrysler. When Plastech closed up shop, Chrysler was forced to immediately idle four plants, sending 10,500 employees home until the automaker could find a new supplier.”

(My bold)

This auto parts supplier bankruptcy scenario, retold in the L.A. Times today, would happen all over the state of Ohio as well as the country. Your “No” vote tells me, you are willing endorse an economic “ripple effect” and fold up the state’s economy, the nation’s economy and bury it and its’ citizens. Why? Yet, this is only a small part of the picture. Then there is the UAW. In addition to the automotive industry, the UAW represents many sectors. For example, the UAW represents employees in aerospace and defense, heavy trucks, farm and heavy equipment, household appliances, brewing, lawn and garden equipment, tools and hardware, firearms, boats, modular housing, toys, musical instruments, pharmaceuticals and food processing. The companies UAW employees are working for include:

Kohler bathroom fixtures, Lennox home furnaces and air conditioners, Miller beers, Colt firearms, Master Loc locks, Land O’ Lakes butter, Folger’s coffee, Libby’s and Crosse & Blackwell canned foods, Yamaha musical instruments, Alcoa, Planter’s nuts, General Dynamics, Boeing, Lockheed-martin, Honeywell, Raytheon, general Electric, Rolls-Royce Allison, Bell Helicopter, AM General (Humvee), Freightliner, Mack, Navistar International, Peterbilt, Volvo North America, Deere & Co., Caterpillar and GNH Global .

Many of these listed manufacturers have operations in Ohio. Thus, your “No” vote on a bailout will further destroy the Ohio economy, as well as the national economy, by simply undoing the benefits support of the UAW to it’s membership in non-auto industry sectors. Additionally, I have not listed the many universities benefiting from research grants, student internships, and related engineering industries such as polymer production, which would be affected by a loss of the major 3 US auto manufacturers. The Alliance of Automobile manufacturers trade group likes to say, “A lot of U.S. industry goes into every automobile.” I assume, Representative Boehner, you were aware of this insight when you stated the bailout was not, “…sound fiscal policy.” In 2005, former Governor Taft, a Republican you supported, developed a five point Ohio Automotive Revitalization Initiative which you backed. Yet, your current stance on a bailout seems to run counter to an economic policy developed for Ohio by a member of your own party. Senator Voinovich, as a former Ohio Governor, seems to understand the overall impact of the auto industry on the Ohio and national economies and supports a bailout. Voinovich, co-chairman of the Senate Auto Caucus,

"believes helping the automakers remain viable is truly putting Main Street over Wall Street," said Voinovich spokesman Chris Paulitz. Voinovich is working on the matter with Democratic Sens. Carl Levin and Debbie Stabenow of Michigan, Paulitz said.

As a child, my parents taught me if you are going to put down an idea, with or without sound reasons, you better have a better plan to present. There are two sides to what is “fair to taxpayers and sound fiscal policy.” Representative Boehner, if you cared about Ohio, why don’t you support the bailout but offer up guidelines in order to “reform the root causes crippling auto makers’ competitiveness around the world?” Perhaps you could start by informing President Bush that the money to encourage energy efficient auto designs, should not be the foundation of the bailout. And then, have lunch with Voinovich. He could help you understand the impact of your words and your vote, on your constituents, the Ohio economy and the national economy.