Two Sides Don’t Form A Shape
It is interesting to me how every issue or problem we face seems to get boiled down to a set of two mutually exclusive solutions. They generally never intersect, and one is typically status quo or expansion of the status quo. What I find very frustrating about this is it seems it is difficult to get alternate or blended solutions into the discussion, so that much like in geometry, real solutions can take “shape.”
Former President Bill Clinton has a new book that is full of new and different ideas for helping the economy get back on track. Not all of the ideas in the article linked here are new, nor do I agree 100% with every idea. However, the ideas are fresh. They might not even be new, but they are fresh. No one else is talking about them. One example that is appealing:
And in the near-term, Clinton says Congress should allow companies with earnings held overseas to repatriate that money at a tax rate below the usual 35% — say 15% to 20%.
If a company is able to prove they will use their repatriated profits to create new jobs in the United States, the tax rate should be dropped all the way to 0%.
With as much as $1 trillion in profits being held overseas, the scheme could create a nice chunk of revenue for the Treasury. Clinton says that money should be used to fund infrastructure grants to the states.
Think about that idea. It gives some to the business community and the conservatives asking for lower taxes on businesses. It gets more money in the American economy. It creates jobs. It increases tax revenues. And why isn’t every senator and representative drafting a bill today to get this done?
Another issue is the U.S. Postal Service and whether we should continue to subsidize postage and 6-day delivery to the tune of over $8 billion per year. Mail volume continues to decline, costs continue to rise and people continue to more and more use alternative ways to communicate. Yes, I know part of the problem is the way Congress changed the payments required to the pension fund. But, check the USPS’ own reports. Mail volume continues to go down. If they are servicing less mail every year, they need to start thinking about keeping the workforce and infrastructure at a proper proportion to the service they are delivering. Yet I see this petition popping up on my Twitter feed to save the 6-day delivery. I want to know why.
Here’s what I would propose. The USPS employs alot of people, and laying them off is probably not a good or practical thing to do at this point. However, it seems ludicrous to pay postal workers to do nothing and to continue to have the taxpayers foot the bill for a service that, while Constitutionally mandated to exist, probably needs to be pared back. (Note: Please read the link. I’m not suggesting postal workers do nothing all of the time. But the bizarre contract they have with the union costs the USPS millions every year to have workers literally sit and do nothing.) Why not scale back the postal service, and retrain those displaced workers to bury fiber optic cable throughout the United States. As people retire or leave for other jobs, you don’t replace them so that the program can be eventually eliminated. The fiber could then be sold to communication companies to deliver high speed communication services to communities all over the United States. Quick math says we could have 60,000 people at roughly $60,000 per year burying cable at a cost of $4 billion. That leaves $4 billion to buy the cable itself to leave it at a break even point. Based on estimates of cable costs (just the cable material), that could buy roughly 250,000-500,000 miles of fiber optic cable. It seems to me if we are spending the $8 billion anyway, we could be doing something more productive like this which provides the future infrastructure we need.
There are plenty of issues that likely have alternative solutions. Education, housing, energy, unemployment, health care and many others seem to always be presented as two-solution systems. Have we lost the ability to think creatively? Are we simply too apathetic to care? Why do we not want to form real solutions? Let’s hope that whoever wins a year from now will be more like President Clinton and at least be willing to discuss new ideas.