It is curious, if not maddening, to observe the unwillingness of our economic and political leaders to admit that the bankruptcy of General Motors is a verdict on a much broader failure of the economic vision of the country. Sure, the incompetence of GM management, over a long period of time, is stunning. But, the bigger points (which seem to escape the most basic reporting) are the following–points I will try to  make tonight on CNBC as part of a one-hour special on the collapse of the auto industry (I’m scheduled to be on around 8:45 p.m.).

   First, putting side mismanagement, the GM bankruptcy of GM is about stupid ideology triumphing over sound economics. To wit: if we had implemented a single-payer, Medicare for All health care system a decade or more ago–overcoming the resistance of the fear-mongers about "government-run health care"–we would not be here today, even taking into account the steep plunge in auto sales triggered by the broader economic crisis. The auto companies just would not have tens of billions of dollars in costs that they’ve had to carry–and which the UAW had to assume as part of its agreement to form the Voluntary Employee Benefits Associations to off-load those costs from the books of the auto companies.

   Second, this is also an indictment of the global strategy of so-called "free trade". Because, folks, when you are about trying to search for the lowest cost possible–meaning, the lowest WAGES possible–of course the next step will be to build cars in Mexico or, at best, the non-union South. On production shifting outside the U.S., an Administration official had this to say:

“Congress and many Americans are going to say, if we own it, why can’t we make these decisions?” one of Mr. Obama’s top economic aides said, “and it’s going to be a challenge to answer that.”

   You think? The challenge will be–though I don’t think there is going to be a lot of honesty here–to answer the questions by looking at the bigger economic strategy of building a world where the driving rationale is still push wages down. In such a world, there is no bottom that can satisfy a company looking to make a profit.