Ohio Democratic Party

TO: Interested Parties

FROM: Senator Sherrod Brown; Ohio Democratic Party Chair Chris Redfern
DATE: February 19, 2008
RE: John McCain and the Ohio Economy

Introduction
The economy is the top concern of Ohio families and the number one issue on their minds as
they consider the presidential race. That’s bad news for Senator John McCain, who is uniquely
out-of-touch with Ohio when it comes to the economy. Senator McCain’s difficulties stem in
large measure from his desire to continue the destructive Bush administration economic policies
that have done Ohio’s economy incredible harm. However, for the Arizona senator, the problem
also goes far deeper. Senator John McCain has demonstrated a deep economic pessimism, a
seeming indifference to bread-and-butter economic issues and an inability to connect with
voters who care about the economy, all of which will plague him in Ohio during the general
election. It is no exaggeration to state that the severity of Senator McCain’s weakness on
economic issues, particularly in key swing states like Ohio, may cost him the presidency.

John McCain’s Unique Weakness on the Economy

John McCain has repeatedly admitted that he does not understand the economy. Senator
George Voinovich, a former two-term governor and steward of Ohio’s economy himself, has
raised grave doubts about McCain’s ability to manage and “run things.”

• McCain: “I'm going to be honest: I know a lot less about economics than I do about
military and foreign policy issues. I still need to be educated.” [Wall Street Journal,
11/26/05]

• McCain: "The issue of economics is not something I've understood as well as I should,"
McCain said. "I've got Greenspan's book." [Boston Globe, 12/8/07]

• Voinovich: McCain Sorely Lacking in Management Experience. Ohio Senator

George Voinovich said, “McCain keeps saying, 'we need a leader; I can hire managers,'
but we need a leader who understands management.” He continued, “There are big
differences between being a mayor or a governor and being a legislator. We are facing
some serious issues in this country. We need somebody who knows how to run things."
[Cincinnati Enquirer, 2/4/08]

John McCain failed to stand up for working families when he skipped a recent vote to rebuild the
economy. McCain was the only senator who failed to show up to vote on the economic stimulus
package designed to boost the country’s shaky economy as well as promote job creation,
sending a clear message to Ohioans about where their top issue stands on his list of priorities.
Paid for by the Ohio Democratic Party, Chris Redfern, Chair
340 East Fulton St, Columbus, OH 43215
 • McCain Skipped Economic Stimulus Vote. John McCain was the only U.S. senator to
miss a vote on an economic stimulus package aimed at bolstering the national economy.
The bill would have made 20 million seniors and 250,000 disabled veterans eligible for
rebate checks as well as expand unemployment benefits and home heating subsidies for
the jobless and poor. [Associated Press, 2/6/08; HR 5140, Vote #8, 2/6/08]

John McCain’s loss in the Michigan primary revealed his inability to connect with voters who
care about the economy. John McCain’s economic pessimism – telling laid-off Michiganders
that their jobs “are not coming back” – was loudly rejected by Michigan voters. McCain severely
underperformed amongst voters who rated the economy as their top issue. Of the 477,000
voters who cited the economy as their top priority, McCain lost by 338,670 votes.

• McCain to Michigan Workers: Your Jobs are Gone for Good. John McCain and Mitt
Romney used two very different approaches when speaking with Michigan voters about
the economy. McCain told laid-off workers that their assembly line jobs have been lost
for good while Romney promised the right policies could bring good jobs back to
Michigan. “I've got to give you some straight talk: Some of the jobs that have left the
state of Michigan are not coming back," McCain told voters in Grand Rapids. "They are
not. And I am sorry to tell you that." [Boston Globe, 1/14/08]

• McCain Lost Badly Among Voters Who Considered Economy the Top Issue.
According to exit polling, Michigan’s Republican voters had one thing on their mind - the
economy. A majority of GOP primary voters (55 percent) said the economy was the
most pressing issue facing the country. Of the 55 percent of voters who cited the
economy as their biggest concern, 42 percent cast their ballots for Romney while only 29
percent voted for McCain. GOP voters turned out in greater numbers than they had in
the 2000 presidential primary, which McCain won. [NY Times, 1/16/08; Rasmussen Reports,
1/16/08]

John McCain: A Continuation

Continuation of Bush Economics

With no substantive plan or comprehensive knowledge of the economy, the only thing John
McCain is guaranteed to deliver is a third Bush term. Under seven years of the Bush
administration, Ohio has experienced the loss of manufacturing jobs, rising energy costs, a
growing housing crisis, and unaffordable health coverage.

The Impact of President Bush’s Policies on Ohio’s Economy

Ohio’s Median Household Income Decreased By 6.6 Percent. Since President Bush took office, only wealthy
households in the top fifth percentile saw any real income gains. In Ohio, real median household income averaged
$45,776 over the 2005-2006 period, compared with $49,031 over the 1999-2000 period. [U.S. Congress Joint
Economic Committee, “Ohio Economic Snapshot,”
http://jec.senate.gov/State%20by%20State/January%202008/OH.pdf, 1/13/08]

Paid for by the Ohio Democratic Party, Chris Redfern, Chair

340 East Fulton St, Columbus, OH 43215
Ohio Lost Over 200,000 Manufacturing Jobs. In Ohio there has been a net loss of 178,600 new jobs since Bush
took office as compared with the creation of 737,700 new jobs under Clinton. Trade policies enacted by the Bush
administration have jeopardized American jobs, leaving U.S. businesses and workers at an unfair disadvantage by
providing incentives to move jobs to low-cost offshore labor markets. The manufacturing sector has been hit hard,
with payrolls nationwide declining by 3.2 million jobs between January 2001 and December 2007, and by 224,300 in
Ohio over the same period. [U.S. Congress Joint Economic Committee, “Ohio Economic Snapshot,” 1/13/08]

Rising Energy Costs Burden Ohio’s Families. The Bush administration’s energy policies have rewarded oil and
gas companies with tax breaks and record-breaking profits while skyrocketing energy costs make it more difficult for
Ohio families to stretch their household budgets. In January 2001, the average retail price per gallon of gasoline in
Ohio was $1.48; by January 2008, the average price rose to $2.96 per gallon. As winter sets in, Ohio families will see
home heating costs rise by 12.1 percent compared to last year. [U.S. Congress Joint Economic Committee, “Ohio
Economic Snapshot,” 1/13/08]

Health Care Premiums Increased by Over 40 Percent in Ohio. The Bush administration has done little to ease the
high cost of health care, protecting wealthy insurance companies instead of providing children and working families
with affordable health benefits. In 2005, the average inflation-adjusted health care premium for family coverage in
Ohio was $11,010, a 42.6 percent increase from 2000, while the average premium for individual coverage was
$4,056, an increase of 34.6 percent since 2000. Nationwide, the inflation-adjusted average monthly premium for
family health coverage in the United States rose by 39.7 percent from 2000 to 2005, as median household income
declined by 2.7 percent over the same period. [U.S. Congress Joint Economic Committee, “Ohio Economic
Snapshot,” 1/13/08]

Subprime Mortgage Crisis Threatens Ohio Homeowners. Under the Bush administration’s watch, unregulated
mortgage originators were given financial incentives to sell risky, unaffordable subprime mortgages to vulnerable
borrowers. As these adjustable rate mortgages reset to higher rates, the number of families unable to afford their
payments and threatened with foreclosure is skyrocketing. In Ohio, mortgages in delinquency have increased from
96,700 in the third quarter of 2005 to 140,700 in the third quarter of 2007. According to a recent report published by
the Joint Economic Committee, the number of subprime foreclosures in Ohio will total 82,200 between third quarter
2007 and the end of
2009. [U.S. Congress Joint Economic Committee, “Ohio Economic Snapshot,” 1/13/08]

Iraq War Will Cost $36,900 Per Ohio Household. According to the U.S. Congress Joint Economic Committee’s
report, the direct and indirect costs of the Iraq War will be massive, especially if the Bush administration continues to
keep large numbers of troops there. Even assuming significant force reductions, the cost of the Iraq War will total
$97 billion for Ohio taxpayers by 2017; the total cost to the country will be an estimated $2.8 trillion. [U.S. Congress
Joint Economic Committee, “Ohio Economic Snapshot,” 1/13/08]

1.2 Million Ohio Residents Have No Health Insurance. A growing number of Ohio residents are living without
health insurance. During the 2005-2006 period, an average of 1.2 million Ohio residents—10.7 percent of the state’s
population—had no health insurance; this was 72,000 more than during the 1999-2000 period. Furthermore, 6.7
percent of Ohio’s children had no health insurance. In 2007, Ohio Governor Ted Strickland passed a bipartisan
budget that provided health care access for all Ohio’s children using the State Children’s Health Insurance Program.
The Bush administration denied the state’s proposal to expand eligibility, leaving thousands of low-income children at
risk of no coverage. [U.S. Congress Joint Economic Committee, “Ohio Economic Snapshot,” 1/13/08; Governor Ted
Strickland press release, 6/27/07; Columbus Dispatch, 12/22/07]

Economic Messages that Work: Lessons from 2006

In 2006, Sherrod Brown and Ted Strickland demonstrated the kind of robust economic message
that works in Ohio. Sherrod Brown placed standing up for Ohio’s middle class at the heart of his
Paid for by the Ohio Democratic Party, Chris Redfern, Chair
340 East Fulton St, Columbus, OH 43215
campaign and drew stark contrasts with his opponent Mike DeWine, an incumbent who listened
to special interests instead of ordinary citizens. Multiple polls showed that the economy and
having a government willing to stand up for the middle class were far more important than the
social wedge issues that dominated previous Ohio elections.

Sherrod Brown was the first Democrat elected to represent Ohio in the U.S. Senate since 1992.
In 2006, Senator Brown defeated incumbent Mike DeWine by nearly a half million votes (over
12%). Brown carried 45 of Ohio’s 88 counties, 30 more counties than John Kerry won in 2004.

BROWN (D) DEWINE (R)

Votes 2,257,485 1,761,092
Percentage 56.16% 43.82%
[Ohio Secretary of State website, 2006 Election Results]

Democrats Offer Much Needed Alternatives

Unlike John McCain, the Democratic hopefuls for the U.S. presidency offer solid solutions to fix
the nation’s economy, focusing on high-wage job creation and education, tax relief for middle
class families, fair and balanced trade policies, and a comprehensive solution to the mortgage
crisis.

Senator Hillary Clinton on Rebuilding the American Economy:

• “It's time for a President who believes that leading an economic comeback is a full-time,
hands-on job. Who renews our commitment to a strong and prosperous middle class
and brings business, labor and government together to restore America's
competitiveness in a fast changing world. A president who has a vision for a twenty-first
century economy based on shared prosperity. Where we measure our success not by
the wealth at the very top but by how broadly wealth is shared.” [Clinton campaign speech,
1/24/08]

• http://www.hillaryclinton.com/issues/middleclass

Senator Barack Obama on Rebuilding the American Economy:

• “I won't wait to raise the minimum wage every ten years - I will raise it to keep pace
every year so that workers don't fall behind. I'll take on the credit card companies who
are profiting by driving working families into debt. And I'll make sure that CEOs can't
dump your pension with one hand while they collect a bonus with the other. That's an
outrage, and it's time we had a President who knows it's an outrage.” [Obama campaign
speech, Greenville, SC, 1/22/08]

• http://www.barackobama.com/issues/economy

Paid for by the Ohio Democratic Party, Chris Redfern, Chair

340 East Fulton St, Columbus, OH 43215