Trump Is Wrong About the General Motors Bailout

Courtesy of The New York Times. By Steven Rattner

I negotiated that deal, and G.M.’s problems go much deeper than one round of layoffs.

In 2016, as he crisscrossed the country for his presidential campaign, Donald Trump promised repeatedly that he would make American factories great again. “My plan includes a pledge to restore manufacturing in the United States,” he told a cheering crowd in the nation’s automobile capital, Detroit.

In truth, Mr. Trump’s promise was false hope, a cynical campaign pledge divorced from economic reality. That was illustrated vividly this week when General Motors announced that it would cut about 14,000 jobs.

Mr. Trump promptly attacked the company, but he is tilting at the wrong windmill: Rather than some arbitrary downsizing, the company’s decision was a rational response to many worrisome factors.

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