(Blogger’s note: since I wrote this entry, the Biden administration has successfully passed much-needed infrastructure legislation.)
I have been listening to Congress dither for years, and now more fervently, about the cost of the Federal Government funding of all things deemed necessary.
For certain there are differences in what is deemed critical, what is necessary, and what is thought discretionary. But the bottom line thinking really should be: Will there be a positive return on the investment?
In my corporate life, determining return on investment, and justifying it, was a big part of my job. Corporate management looked at that very seriously. The things to be considered with any investment are:
(1) Does this solve a serious safety issue?
(2) Does this provide needed repair and/or upgrade to the assets involved?
(3) Does this result in a more efficient use of the assets involved and thus a return on the investment?
(4) Does this result in a positive outcome for the environment, communities, or citizens involved?
(5) Is this required by local, state, or federal laws and regulations?
(6) Are there any unintended consequences?
(7) Is it just the right thing to do?
In my opinion, the major issues being fought over in the federal congress today need to be resolved and funded if this country is to move ahead rather than deteriorate to third-world status. Unfortunately, one obstinate senator has been able for years to block all attempts to do anything that he perceives to be an advantage to the other political party, rather than what is good for the country.
But back to the concept of return on investment…
When infrastructure projects are funded, it is true the cost must be funded upfront by spending savings, current cash flow, or debt. But how does this pay back, ignoring safety issues and absolutely necessary resolutions?
(1) People are put to work earning good wages and salaries.
(2) Businesses are put to work producing the services and products to complete the projects.
(3) The communities and the country are made more efficient as a result of the projects.
(4) The money spent by all the above will have a multiplying effect in the communities where the projects are being completed making them more prosperous.
(5) Every wage earner, salaried persons, business, corporation, and those receiving the multiplied dollars pay local, state, and federal taxes and fees, or they should. This will be a sizable return on the investment to say nothing about the vast improvements to what needs to be done.
(6) Lastly, all citizens and corporations have to realize it is their responsibility to help pay for the things that make this country work and prosper. As a last resort they have to be made to.
As long as individuals, businesses, and corporations are allowed to use tax laws to earn vast sums while paying little or no taxes, a large resource for investment payment will be lost.
I think Democrats in congress are missing the opportunity to change public thinking on this and other major topics. Republicans are consistently and often beating the dying horses called “Cost, Cost, Cost” and another one called “Don’t Change Unless It’s Our Idea.”
I don’t hear Democrats arguing value and payback. Instead they are always on the defensive and willing to compromise, maybe too easily. They are ignoring the sound pushback that the general public can understand and accept with a well-thought-out crafted message echoed by all officials and interested parties continually with conviction.
Make the public understand how they will benefit from these proposals so they put pressure on their elected officials. It will take a production much like the Republicans always mount. I think this will be far more effective than arguing with a few senators who are never going to agree about much of anything and only want to stall in the hopes Democrats will downgrade to insignificance or simply give up and move on.
As long as Congress is more focused on political power rather than rebuilding what has for so long been ignored, I see little hope for the future and maybe we should all start to learn to speak Chinese.
Ken Kaiyala
6-23-21
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