UPDATE: Hat tip to Mickey Kaus, who found an interesting (related?) item from TTAC. A commenter there calls it “felony stupid.” See if you agree:
If you want to pretty-up the P&L of a car company, there are two quick fixes: You cut marketing expenses, or you cut R&D. A cut of R&D expenses won’t show up negatively for three to five years, when you suddenly lack new cars to sell. In the meantime, you look like a hero. General Motors plans to cut about a quarter of the workers at its R&D facility at the Warren Technical Center in suburban Detroit.
Kaus asks, “Why would GM cut R&D so profits look good in the short term? Is something happening in November?”
And that’s the problem with crony capitalism. Let’s pretend for a moment GM is making the right move here. But it would still appear that GM has made a political decision for Obama’s political gain.