Esquire's State of the Union - One interesting proposal

[MrCoffee]

Esquire asked David Frum to write a draft of a State of the Union address for President Obama. While the overwhelming majority of the piece is utter garbage, there was one proposal that I thought was interesting regarding infrastructure.

I propose that all revenues from gasoline taxes, aviation fees, and other similar sources be placed in a fund directed by an independent infrastructure bank. The bank would be permitted to issue bonds up to a certain level, too. Instead of Congress writing a highway bill every five years, the bank would develop a list of priorities — no politics allowed. I'd suggest we have seven directors of the bank. Three would be nominated by the president and confirmed by the Senate. Two would be nominated by a conference of the Republican state governors, two more by a conference of the Democratic state governors. The directors would serve fixed and overlapping terms. When we're balancing the budget, we can move slowly through the list of bank infrastructure priorities. In a year like 2011, when it's cheap to borrow and workers need jobs, we can bring projects forward faster. Congress would always have the last word, in an up-or-down vote. And Congress would decide whether to increase or reduce the flow of future tax revenues into the infrastructure bank.

Every American will have the reassurance that these new infrastructure projects are not pork barrel. They were not chosen to reach some political deal. The money you pay at the pump or at the airport or in future taxes on carbon dioxide and other pollutants will be reinvested toward faster travel, more advanced telecommunications, and cleaner water.
http://www.esquire.com/features/david-frum-state-of-the-union-2011-0211

[Proud Liberal Dem]

1. It sounds like a good idea

coming from a Republican. Why can't we spend time in Congress debating ideas like THAT? That's something that could certainly get bipartisan support but, no, we have to fight over repealing laws and codifying things into law that are already law, as well as one side talking about simply refusing to do their job until their "demands" are made. :banghead:

[MrCoffee]

2. That was my reaction...why not at least discuss it?

Even if it ends up going nowhere, the idea has some merit, so why not talk about it?

[hedgehog]

3. The problem is that there is no such thing as "no politics allowed"

Right from the get-go , do you invest in roads, or railroads? Railroads, or airports?

In theory, the Federal Reserve is apolitical, but there is a clear bias toward preventing inflation at all costs. The Federal Reserve could be tilted to favor full employment or more equitable income distribution.

For another look at apolitical institutions, look at the entities New York State has called "authorities". Ostensibly apolitical, the authorities can do great service to the people of New York, or they can be juggernauts answering to no one.

"The public authority, an autonomous organization that creates public works with money raised by issuing bonds, was legally possible before Mr. Moses became active, but it was a device that had rarely been used. He drafted legislation to set up such authorities as the Jones Beach State Park Authority and the most powerful of them all, the Triborough Bridge and Tunnel Authority. It was through the authorities that Mr. Moses was able to conceive of most of his projects and create them largely unchallenged by public or political pressures. The most successful projects, like his toll bridges, brought in vast revenues that the authority - which meant Mr. Moses himself - could control, free of any public or governmental interference."

http://www.nytimes.com/learning/general/onthisday/bday/1218.html

[MrCoffee]

4. That's always going to be an issue with "independent" agencies

It's a perfectly reasonable criticism to raise, but given the current state of federal infrastructure financing, and the state of US infrastructure itself, I think it's high time that some new proposals at least see the light of day.

Thanks for your comment!