This is just the next step in the dismantling of Science in the US.
Under St. Ronald the Blessed government funding for science plummeted. Large parts of the National Laboratory infrastructure were dismantled. Funding for science education, pure research and basic research was slashed. We were told that the Sacred Market would automatically take care of everything. Bless the Market! Bless the All-powerful, All-seeing, All-loving Market!
It didn't work that way.
The system of industry- and company-owned research labs collapsed within a few years. The resident expertise and institutional competence was thrown out. Now when the boardroom wants science done it is increasingly subcontracted piecemeal to the universities.
The universities are in real trouble. Funding is down. It is difficult if not impossible to get money for long term research that doesn't yield immediate commercially exploitable results. The money that comes from industry is generally very specific for set projects and very limited amounts of time. With the decrease in tenure scientists are increasingly lecturers, adjuncts and non-tenure track assistant professors. There is not enough stability or security to set up anything except very short term research.
Employment opportunities for scientists are down, and despite what Bill Gates says and the Smirking Chimp dutifully repeats we are graduating more people than we employ. We just aren't graduating enough who are willing to spend eight years in school to work contingently for $30,000 on the vanishing chance of getting some job security after a decade of postdoc holding patterns and gypsy scholar positions. So L-1 and H1-B visas get handed out like party favors. Employment prospects for American scientists and engineers take a hit as foreigners are brought in who can not quit and can be paid less.
What's worse, almost all research connected with industry is confidential. There is no communication with colleagues. You can not use an idea or result from funded research in other projects. Papers are held back. The free communication and interchange of ideas that is absolutely vital to scientific progress has been cut off.
DARPA has funded a lot of interesting "Blue Sky" projects and lines of inquiry. That stopped in the first half of 2001. The DoD announced that it would only be funding short term research with immediate practical results.
So the government isn't funding science. Industry isn't funding science. The human and institutional basis has been destroyed. The military pipeline has been shut down. The free exchange of ideas and results which is the cornerstone of modern science has been broken up and sold as pea gravel. We have had in the senile Gipper, Maximus and Minimus almost twenty years of active hostility to science as a concept. The current Great White (always and forever White) Hope of the GOP is Mike Huckabee who has stated several times that he prefers faith to science because science can change.
Meanwhile nations that are on the rise rather than entering a quick and possibly fatal decline are mad about science. Funding in East Asia, South Asia and large parts of Europe is up. Research and development are serious priorities. They recognize that reality is more important than fantasy. We have decided that the ravings of a bunch of illiterate sheep-shagging desert nomads and low class urban lumpen proles tell us everything that we need to know, and our Big Invisible Friend in the Sky will make it all right because He loves us. And before the Christians get all huffy, they're my goat-poking and lion-fattening ancestors, not yours.
We've destroyed science and the basis for science in this country. We have squandered our lead and the things that made it possible. What's worse, we've devalued science and put superstitious self righteousness in its place. But we expect that things will work out because - Hey! Hotpants McStarlet just got arrested for drunk driving! American Idolatry is on! 9-11! 9-11!