Letter to President Bush

12th December 2008

I sent this letter to President Bush today.

Dear President Bush,

It is hard to believe that it has even come to this, but PLEASE support the loan package for the auto industry.

Forcing GM and Chrysler into Chapter 11 bankruptcy would not only devastate an already weak economy, but also signal the end of American manufacturing prowess to the rest of the world. Because of the overlapping supply base, the collapse of any of the 3 US automakers would take down its suppliers, which would not only take down Ford, which is not in imminent danger, but also the foreign manufacturers operating in the US. A general manufacturing collapse would follow, taking out basic industries in all sectors of the economy.

What the “Big 3″ are requesting is a loan, as you know. They fully intend to use the money to maintain liquidity to get them through the worst economic and credit crisis in 75 years. Without credit, dealers cannot stock cars and consumers cannot buy them. Foreign automakers have been requesting help from their home governments as well - so this is clearly not simply a case of mismanagement by the US automakers.

Comparing the situation against the foreign automakers is also not a fair one. While I fully support free trade, it also must be FAIR trade. We welcome products from around the world to be sold here, but the rest of the world is not so accommodating to our products. They protect and nourish their home-grown industries, while we scorn and punish ours. They give particular attention and help to their auto industries, because they know that auto manufacturing brings with it vital ancillary industries - basic research and development, plastics, steel, rubber and semiconductors, to name a few. Why do our policies not place such value on our manufacturing industries? We have already lost many industries, including steel, televisions and computers to foreign countries which support their own. How many more can we stand to lose before we are relegated to 3rd world status?? We can’t all work at WalMart or Starbucks! Senate Republicans that voted against this bill last night know this too, as their state governments have spent billions to lure foreign auto plants and suppliers to their states.

Unlike Wall Street, with its $700 billion giveaway, none of the Big 3 has engaged in questionable business practices that have put this economy in such danger. They have made mistakes, which they freely admit, but all of them were well on their way to righting their respective ships when this crisis hit and pushed them over the edge. They have already done what the so-called experts have told them they must do: Ford and Chrysler have brought in respected managers from outside the industry, all 3 negotiated major concessions from the UAW last year.

President Bush, this is perhaps your last chance to leave behind a legacy as the person who saved millions of jobs and perhaps the very future of our economy. Please do the right thing for all of us, including those who don’t know it yet.