How to Save the U.S. Auto Industry Economy in One Bold, yet Simple Step!

Once the American Auto Industry was the industrial engine of the Western World. Remember the old saying,
"Whatever is good for GM is good for America"

With all the talk of GM buying Chrysler from Mercedes, Its clear that something must be done before the car industry becomes even a bigger sink hole on the country. When did a merger of money losing companies ever accomplish anything ? All that will result is one bigger company that will be more bureaucratic and difficult to fix. Allowing this merger would be like moving passengers to the high side of a sinking boat..

Now this may sound like an outrageous step, but it actually makes economic sense:

GIVE DETROIT TO CANADA!

Now in addition to being the center of the U.S. auto industry, Detroit is also the poster child for Midwestern urban decay. With high unemployment, high crime, and rusting infrastructure, it is currently a major drain on the American economy. What does Detroit bring to the U.S. except a lot of middle aged Auto workers popping Viagra at the courtesy of their generous health plans. All those money losing auto companies are a burden on the tax base, not a revenue source.

Let's examine a few important factors:

The main problem with the U.S. car industry is that their health care costs are much higher than their competitors.

Health Care in the U.S. is expensive and inefficient.

The auto workers are getting older and older and more dependent on health care.

Canada offers health care to its citizens for free.

Canada offers relatively generous unemployment benefits.

The entire Detroit area is an economic cost to the U.S.

If the auto industry were Canadian, the U.S. could raise the gas guzzler tax and eliminate S.U.V.'s exemption as trucks. ( Of course I would advocate keeping the exemption for Monster Trucks).

Instead of supporting an industry that is hemorrhaging cash, We could just collect taxes on cars brought into the U.S.

This would raise tax revenues, lower benefit payments and reduce crime in the U.S.