Would you rather spend that amount of time, planning and money on an industry that is highly labour-extensive, produces large negative externalities and has a questionable future, or would you spend it on something else?
As green proponents in charge of crush-and-swap schemes, or working in a combined way with new emissions and energy efficiency standards, GM, Chrysler and Ford could become a useful asset rather than another drain on resources.
In terms of the wider economy, they're collateral damage. A bolder move would be to nationalise big oil. They've worked so hard to own the government, the government should repay the favour. When Exxon's profits are $40bn, managed at the same time that pump prices have been the highest in living memory, there's plenty of room there for more efficient government management of the energy economy with some aggressive intervention.
Nationalising big oil would also remove one of the biggest funding and lobbying blocks against sane transport and energy policies.
