Building a Bridge to Nowhere

     Jobs are important for an economy. However, the job must be able to self-validate itself. If a job does not fulfill a natural task dictated by need. The job just becomes a burden on the economy. No matter how good the job being performed is, or its value in terms of wages.

     The argument always comes down to if the government don’t build it who will? The answer is private interest. The picture included with the title was taken by Deborah Schaben. It is a bridge in Idaho that spans the Snake River, known as the Perrine Bridge. It was first built in 1927 with private funds. At the time of its building, it was the highest bridge in North America. And it was built to serve a need, not just to create jobs.

     Too often, government base a job’s value on the skill required to perform it or the salary paid to maintain it. And the CUT Tax will have the effect of eliminating higher end jobs in the accounting and tax law fields. However, most of these jobs can only be validated by the draconian tax code leveled by the state and federal government. They are there to fill an artificial need. The need to protect citizens and organization from the punitive tax levels of the governments.

     There will always be a need to protect people from government overreach. Therefore, it would be good to eliminate one axis of governmental control that exist, buried in the enforcement of the tax code. The tax code allows for the government to favor or punish speech, products, and individuals. This power can and is be used to shape elections, suppress ideas, or promote agendas. One only has to look at the scandal that involved slow playing Tea Party and patriot groups’ application for tax free nonprofit status, which affected an election, and created target investigation of private individuals

That brings me to the concept of building a bridge to nowhere. Jobs are really bridges, they take an organization from where they are currently, to where the organization wants to be in the future. If applied right, they also take the job holder from where they are, too where they wish to be in the future. And if the job does not fulfill this role, it becomes known as a dead end job. And dead end jobs become a drain on both the organization and the employee. Yes, they need doing until a new solution comes along, however, they do not contribute to the overall growth of the organization or the individual. 

     Let us say that you were the mayor of a successful city, and on one side of the city you have a bay with a picturesque island sitting in the middle. For years the island has been inhabited by a few small farmers for the most part. It was served by a ferry, however, has remained largely undeveloped.

Then a developer come to you with a proposal to develop this land. You say that this has been tried before. We have increased the ferry schedule, and have spent some money trying to develop it as a tourist destination.  However, it never developed more than a weekend picnic area for the local inhabitants of the city. We believe the best use is just develop a few parks to beatify the area and leave it as a city landmark.

     The developer tell you. “The problem is that you need a bridge. Nobody is going to develop it using ferries, they are to slow and inconvenient.”

     The Mayor said. “We have looked at building a bridge. It is too expensive and the payout does not come until year twenty after completion, and by then the bridge will need resurfacing and repairs that would run it into the red again.”

     “The opponents of this project call it a bridge to nowhere, because it only gains you a small amount of land for the massive cost.” The Mayor concludes. “And there is no real demand to develop the island, it has no resources, would not make a feasible port. It is just a pretty place to visit.

     “Well, that is because you simple people are looking at it from a static number, you are not incorporating the new jobs that will be created.” The developer posits.  “These will be high salary positions and union labor that will pay twice as much as your current industrial base and your population will grow.

     “You need to factor in the increased tax base you will enjoy.” The developer says persuasively. “All that money you borrow will come pouring back into the city’s tax base. Money will rain down on the city like manna from heaven.”

     So the mayor acquiesce, and gathers the political support to take out a large municipal bond to fund the project.

     After the first year of construction, the mayor and the contractor discuss the status so far.

     “So far the project is progressing as promised.” The Mayor states. “Unemployment is dropping, wages are rising, and revenue to the treasury is expanding. The city is growing, however, there is a large percentage of the bridge work force that stay here during the week, but go back to their homes in other cities over for the weekends and holidays.”

     “Yes. There will be a certain percentage of the workforce that will do that, it is not a permanent job, so they travel from place to place.” States the developer.

     The developer continues on with his concerns. “However, after researching, we have found that the island is not part of the city’s charter. You will need to annex the island to make it a part of the city’s tax base.”

     In the second year meeting the mayor is feeling the stress of sudden growing pains.

The Mayor starts off the meeting. “Although, tax revenue to the city has risen, it is being ate up trying to expand the cities overtaxed infrastructure now. Not only did we annex the island, we had to annex a small village to the west of us. Resources and employees are stretched thin. Potholes are being left unfilled because of budget short falls. We are left with ignoring the old issues to generate new infrastructure to meet the demands of burgeoning small businesses and growing residential needs.”

     The developer interjects. “You also need to start planning the development on the island, and start adding a little infrastructure, in order for people start thinking about investing in the development on the island.”

     Flabbergasted. The mayor interjects. “We lose employees to the bridge project, and wages have skyrocketed to m municipal employees. And the industrial base is shrinking due to the same wage pressures. We can’t find money for the current infrastructure needs, how do we add a new area logistically isolated, into the already stressed budget?”

     “Well you better find the money, or the island will not develop into a high tax base for your future budgets.” He replies. “And as for the manufacturing base, the bridge jobs pay twice as much, so that will compensate for a few displaced manufacturing jobs. Every bridge job is currently worth 2 jobs in the private sector. Developing the island is more important than protecting the manufacturing base”

In the third year, the bridge is almost complete.

     “In the next couple of weeks, we will have the official grand opening of the bridge.” The developer states. “Although, there is no move in ready structures and businesses yet, due to the city’s reluctance to provide basic infrastructure.”

     “In fact there is a lack of interest among investors, due to the city’s lack of commitment to the island.” The developer concludes.

     Defensively, the Mayor replies. “We were unable to commit resources to the island, until the bridge is complete. The cost overruns would explode the budget. And we are already experiencing a shrinking of revenue as labor is heading off to the next bridge project.”

     “Once the bridge is complete, we can start on roads.” The Mayor replies.

     “Roads are a start, and relatively cheap.” The developer states. “However, serious investment will not occur until there is adequate water, sewer, police protection, with electric and gas services. You still have a long way to go.”

     Year four.

     “The city has left us no choice but to file a lawsuit to repeal the annex of the island.” The contractor states. “The city has not fulfilled the basic infrastructure requirements, which were promised in the annex.”

     “The isolated portions of the island have been overrun with homeless people squatting on the land.” The developer stated. “And infrastructure projects are still a long way from completion. And my investor demand action.”

     “It has not been a cakewalk over here.” The Mayor replied. “One in ten property taxes are delinquent, the housing market is flooded with abandoned houses, which have drawn in squatters, and created a plague of Meth Houses.”

     “The manufacturing sector, is a fraction of its five year high.” The Mayor continued. “With small businesses closing almost daily, wages are stagnant, and the workforce is moving to cities with a better unemployment rate.”

      “Now, you threaten to abandon the city, after we spent a huge amount of money to connect it to the mainland.” The Mayor concludes angrily. “You convinced me to build a bridge to nowhere, and now it is connected to a city that is going nowhere.”