The domestic U.S. auto industry and state and local governments face a crisis. Sales for the former and tax revenues for the latter are collapsing, at the same time each face soaring health care costs for employees and (because of the rich pensions after early careers their employees receive) retirees. General Motors has said that absent assistance it will have to shut down by the end of the year; public services are about to collapse, and state and local taxes are about to soar, particularly in New York. The federal government could prevent the disaster by enacting a universal health care financing system at the federal level, providing a choice of a public program such as a less extravagant version of Medicare and a similar subsidy for the purchase of private insurance. Such a system would lift an enormous weight off both older corporations with many retirees and state and local governments, more than enough to offset the taxes that would be required to fund it, and federal aid in other categories that states and localities could thereafter fund themselves. But there is a political party, and powerful interests backing that party, that stand in the way, because they have such a sweet deal under the existing system. I refer, of course, to the Democratic Party, the auto industry, and public employee, auto industry and health care unions and lobbyists.