The ‘Infrastructure Bill’ is in the news again, supposedly with a bi-partisan support effort. What is not discussed is what is actually in the bill, other than a multi-TRILLION dollar price tag. This statement brings to mind a few questions that I think are germane to the issue. Let’s dig.
First, what does an item cost? We think of bridge construction, highway maintenance, COVID-19 vaccine shots, and the like, and the next question should be: what does each cost the taxpayer? A per-project list should be available, with contractor bids, for the first two; the second should be pure multiplication: billed cost per shot times the number of doses purchased.
Second, what did we pay? For every item in the last paragraph, a true accounting SHOULD be available for what exactly did the taxpayer spend for that item. Not looking for a forensic audit here (although with $30T in debt, maybe we should be), but a high-level smell-test: if an item should cost $50B, did we pay that amount, or a multiple of that amount? If we paid more, to whom did we pay? Did we fund a permanent bureaucracy to administer this program? If so, why, and for how long?
Third, were any alternatives considered? Not all materials are the right ones for every job—sometimes, better materials are more beneficial in the long run, avoiding re-work sooner. Some materials are flat-out foolish for some projects: just because we CAN spend lavishly doesn’t mean we always SHOULD.
Fourth, what is the long-term impact of this purchase? Does this spend actually provide a negative incentive to those receiving the benefits of the spend? My favorite example: Social Security benefits. As most know, employers and employees pay roughly 15% of the employee’s gross pay into SS. The intention was to provide retirement insurance funding to the employee, after the employee reaches a certain age (usually 65 or so). But the reality is quite different: many folks that haven’t paid a dime into SS are now receiving payouts. And those that pay decades into the program get nothing, if they pass away prior to achieving benefit age. Since SS funds are now ‘non-isolated’ (part of the Congressional General Budget), the system is now: current taxes collected pay for current benefits disbursed—not exactly the original plan. But the sneaky side-effect: many people are of the mindset that, since SS will be there, they have no incentive to save for themselves. This negative incentive was not part of the original plan, nor is it prudent financial planning. The other side of the equation: what if the employee could’ve invested his deductions (or a portion thereof) instead of going thru governmental channels? Even if the investments were severely limited to the risk level they could select, the bet is that most would have much more funding available than the current approach.
Finally, it seems to me that a matter of priority should be addressed. With the tax collections exceeding $3T each year, many things can be done with those funds—but not EVERYTHING! In addition, Congress is not the slightest bit shy about spending funds they simply do not have—that is how we accumulated the $30T debt we already have, and it is set to expand greatly upon signing of the aforementioned ‘infrastructure bill’. The question is not whether we are attempting to do too much with our taxes. That is a given, regardless of the standard applied. The question is: at what point do we, as a country, yell ‘STOP THAT! WE’VE BORROWED ENOUGH!’? Economists are already questioning the ability for the US to repay what they have already overspent—the current debt will likely not even be addressed until our grandchildren are taxed to do so. This train is not slowing down, folks. If anything, it is picking up speed long past the ability for the brakes to have any effect upon it. Do we just wait for the inevitable train wreck, or is there any other option available? I don’t see anything possible, even if Congress would even consider it. Maybe it’s time THE PEOPLE force them into fiduciary responsibility? Someone get a rope…
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