JUST WHAT NE OHIO NEEDS RIGHT NOW (OR, MORE NEWS OF THE RECOVERY): From Brad DeLong...

Urrrkkk!

This is not good:

WSJ.com - GM, Ford Plan Cuts in Production: In moves that could slow the Midwest manufacturing economy -- particularly in election-year battleground states such as Michigan and Ohio -- the two titans of the U.S. auto industry, General Motors Corp. and Ford Motor Co., said they will cut fourth-quarter vehicle production. The announcement followed a disappointing August for auto makers, which saw American consumers steer clear of large, fuel-chugging sport-utility vehicles as oil prices surged. Sales of GM's big Chevrolet Suburban SUV fell 38%, amid a decline of 14% in overall sales, and Ford's large Expedition SUV slumped by 23%, despite discounts of as much as $6,000 per vehicle, amid a 13% decline in overall sales....

But the decision to ratchet back production is a significant step, because the auto makers play a huge role in the country's manufacturing economy. GM said it will cut production at its North American factories by about 7% during the fourth quarter in response to slowing sales. Ford said it will cut North American production by nearly 8%.