There has always been
some synergy between the private sector and the federal government in the US.
This synergy was restricted to select critical infrastructure that crossed
State lines and improved the movement of goods.
In the US, private
sector companies and individuals were historically responsible for their own
economic survival. Governments’ historic responsibilities included the
development of the US economy, but using federal government funds for anything
beyond its “enumerated powers” responsibilities were avoided by Congress until
1872.
State governments had
a greater responsibility for economic development and more flexibility than the
Federal government. States have always been competitors. States were
responsible for roads, bridges and ports and quickly delegated local projects
to county and city governments.
There were exceptions.
Hamilton had no problem with using federal funds for economic development.
Jefferson wanted the Federal government to remain compliant with the US
Constitution.
The Treaty of Paris
ended the French Indian War (1756-1763) and ceded territories west of the 13
colonies to the Mississippi River from France to Britain and ceded the
Louisiana Territory to Spain who later gave it back to France.
In 1803, the Federal
government bought the Louisiana Territory for $15 million from France to
provide new territories west of the Mississippi River for new States to be
established..
In 1792, Congress
authorized the creation of a private company to sell bonds and fund the
development of the Erie Canal that was completed in 1825 for $7 million. It
connected the Hudson River with Lake Onterio. This allowed New York to move
goods more efficiently and established more ports to the Atlantic Ocean.
In 1811, Congress
funded the 620 mile long Cumberland Road that was completed in 1837 to move
goods from Cumberland Maryland to the Ohio River.
Synergies currently
exists between industries and government and consumers that are both positive
in their utility and negative in their excesses. US industries, governments
consumers lack fiscal discipline.
US Household Debt rose
to $14 trillion as of 6/30/19. US Corporate Debt stood at $15.2 trillion as of
1/1/19. US Government Debt stands at $22.5 trillion.
Credit - Consumers are
prone to buying what they need and what they want. Consumers have not paid cash
for over 100 years, they now rely on credit.
Bankers benefit from borrowing as their legacy revenue stream. They also
benefit from buying assets that appreciate over time like commercial property
and businesses. Bankers like inflation. Consumers hate inflation.
Loans - From the 1950s
to the 1980s, inflation was high. US consumers had no incentive to save. Ready
access to loans encouraged consumption. The price of new cars rose from $1500
to $7000. Most families owned homes that would appreciate in value and had a
mortgage. They also had cars that depreciated in value and made car payments.
This continues today, but many families are renters.
Credit Cards – In the
1930s, commercial customers could use a “charge plate” vendors would use when
their customers ordered materials. In the 1940s, airlines offered “air travel
cards” travelers could use to secure an airline ticket and pay the airline later.
In the 1960s “credit cards were established by banks and appeared in the mail
to their customers. In the 1970s, the processing of credit card purchased was
computerized.
There are shared costs
between government and the private sector to establish and maintain our
utilities and roads.
Hydro Electricity –
The cost to a county to develop and complete a reservoir for a hydroelectric
dam is a shared cost. The county pays
for land acquisition, location, design, deconstruction and grading. The
electric company pays for the hydro plant construction, machinery, distribution
systems, operation and maintenance. We need more Hydro and more reservoirs to
retain and manage our rain water.
Natural Gas Utility
companies receive easements from counties and dig gas lines to connect gas
storage to customer’s homes and buildings. They have kept gas prices stable and
fracking has increased US natural gas production.
Water & Sewer
companies receive easements from counties and dig water distribution lines from
clean water storage to customers’ homes and buildings and dig sanitary sewer
lines from customers’ homes of dirty water to waste and water treatment plants.
These companies need to redouble their maintenance to end water and sewer
leaks.
Storm Sewers are built
by counties to manage rainfall with county staff and Contractors to install
storm sewers and pipe systems from roads to designated ponds, creeks and
rivers. The good news is that cities and counties are installing storm sewer
pipes made from composite material that last over 100 years. The big expense for this is excavation and
rather than replacing rusted corrugated pipes that last 25 years, we are using
materials that last 100 years.
Roads – The cost to a
county to develop and complete new roads includes land and building acquisition
cost, design, construction and maintenance.
Counties with fully equipped Road Crews or private sector Contractors
provide project management, equipment, operators and laborers to install or
maintain the roads. Private sector companies provide the concrete, gravel,
asphalt and surfacing material.
Healthcare – US per
capita healthcare cost has risen from $147 per year in 1960 to $10,739 in 2018.
We’ve endured decades of lethal cancer treatments. We spend $3.5 trillion a
year. We need to repeal Obamacare and base insurance premiums on coverages
chosen and risk. The 5% who are very poor and very sick can get Medicaid. The
rest can get major medical. It’s time to deregulate and end the medical cost
drivers.
Education – US college
tuition has risen from $1000 per year in 1960 to $10,230 per year in 2018. K-12 spending in 2018 was $649 billion. The
US performance had dropped from 1st place to 17th place.
We need an entirely new government-free education system.
The predators in this
drama are government, excessive fees and fines, land speculators, unsustainable
government pension plans, oversized easements, oversized intersections, incompetent
crony contractors who are not the low bidders and city managers who are
dependent on cronies and the Deep State for their next job. Government
underspends on essentials and overspends on nonessentials.
Norb Leahy, Dunwoody
GA Tea Party Leader
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