THE CURMUDGEON CHRONICLE - #250

THE CURMUDGEON CHRONICLE ©

AN IRREVERENT VIEW


Time Line: December 21, 2008
Date Line: Flemington New Jersey

Chronicle Readers know that I think outsourcing industries, jobs, know-how and technology is sinful and has left us short of things we need to recover from the current economic comeuppance. Americans looking for a silver lining find the only advantage of globalization is that it has left fewer sacred cows to get rid of.

Mr. Obama says our infrastructure is the place to begin recovery. State Treasurers are rubbing their hands and counting the money. However, most of their projects are local and do not impact the economy or fill job needs on a national basis.

We need coordinated kick-off and follow on projects that: include all 50 States; give people jobs in many economic sectors; add to the techno-base we need to rebuild; can be produced with products we make in the US, and with US raw materials. Congress has been silent about the first deal so it is reasonable to assume political infighting and sectionalism is afoot.

We suggest that Mr. Obama finesse those issues by picking Airports as the first infrastructure project. Airports in every State would be part of the program. All legislators could come home and point to the benefits that they brought to their constituents. No Senator could claim exclusivity, but all could claim to be part of a plan to bring jobs and prosperity back.

Almost every US airport has antiquated control tower systems, equipment. and facilities. Their runway systems were designed for mid-twentieth century air traffic, upgraded (if at all) like a patchwork quilt. If you want to know why no UFOs have landed, look no further for a reason. Aliens are terrified of the near misses in our air traffic patterns and more so of the roads from airports to nearby cities.

The problem’s solution would add millions of jobs to the economy in engineering, manufacturing, construction, maintenance, and continuing operations. It may have the added benefit of rekindling our youths’ interest in technological careers.

All that can come to pass using domestic materials, technology, and labor because:
… We can still make the parts and the electronic gear needed for the task;
… We can still produce the required “heavy lifting” computers and communications gear;
,,, We have the engineering, know-how, and manpower needed to rebuild the runways, towers and access roads;
… We have the materials and production needed for all fifty States;
…We wrote the book on the requisite technology;
…We can create a major new market and trim the trade deficit,
… We don’t need new bureaucracies to do the job, and
… We don’t need new taxes to pay for the project.

The FAA and its sister agencies can regulate and supervise the project, free of jurisdictional issues: this is an exclusive Federal matter complementing State and local government needs without cost to them.

Assume that an average installation will cost $50 million for all things required for the project. The airline/airport industry has always paid those costs from within the fare structure. Federal project advances will be reimbursed without new taxes and with positive economic effect.

Typically, 55% of the costs ($27,5 million) are spent on all direct and indirect labor applied to similar projects (including labor to produce the supplies and raw materials). Statistics demonstrate that a payroll dollar turns a minimum of eight times in the economy. Thus, each project would create $220 million of new payrolls and business activity. If the Government were to sponsor 2 projects in each of the fifty States the total increase in payrolls would be $220 billion.

It all sound simple and while calculating the benefits I recalled my creative writing teacher who said a story must have elements of royalty, religion, the common man and sex to appeal to a broad audience. Then she asked the class to write short stories.

One student, (who did not get an A), submitted the following:

“My God!” said the princess to the plumber, “Get your hand off my knee.”

I hope Congress gets the point.

Howard Stamer