Key Takeaways:
– Sale of non-environmentally sensitive properties could raise between $1-$10 trillion
– Proceeds could be used to offset the national debt, currently standing at $35 trillion
– Auctioning off electromagnetic spectrum rights could generate another $100 billion
– A report suggests that auctioning 100 megahertz of midband spectrum could increase U.S. GDP by over $260 billion and create 1.5 million jobs
– The U.S. is lagging behind China in terms of 5G network coverage
Tapping into Idle Assets
The U.S. government owns trillions in diverse assets – land, buildings, rights to natural resources, and surplus office furniture. Many of these remain underused in the corner of government offices. Leveraging these could potentially earn between $1 and $10 trillion.
Bringing these assets into productive use will not only generate substantial revenue but also enhance annual tax receipts. Importantly, this wouldn’t involve sensitive sales like the Washington Monument or Yellowstone National Park. Instead, the focus would be on non-environmentally sensitive assets that hold potential to fuel economic growth.
Channeling the Gains to Debt Reduction
By selling these assets to American citizens and businesses, a significant portion of the $35 trillion national debt could be retired. This would relieve future generations from the burden of an extensive debt obligation, marking a win for taxpayers and the U.S. economy.
The Value of the Invisible
Of all the available assets, the electromagnetic spectrum holds remarkable value. It facilitates our daily communications, powering cellphones, Wi-Fi, and other wireless technologies, including 5G communications.
Selling spectrum rights to telecommunication and tech companies has historically boosted U.S. Treasury revenues. Past auctions raised over $100 billion. We could derive at least another $100 billion from a new round of auctions, all without encroaching upon military or emergency services’ spectrum needs.
Boosting the Economy and Balancing Budgets
Sale of these spectrum rights could stimulate the economy in two ways. First, it could offset any revenue loss from making existing tax cuts permanent. Second, a report from National Economic Research Associates suggests that auctioning 100 megahertz of midband spectrum licensed for 5G could raise U.S debt by more than $260 billion and create 1.5 million new jobs.
In the past, Congress has used revenues from spectrum auctions to balance tax cuts in reconciliation packages. This successful strategy should be replicated.
Ensuring U.S Tech Dominance and National Security
Apart from its economic benefits, auctioning the spectrum is crucial for national security and maintaining U.S. tech superiority. The world is increasingly going wireless, relying less on cables and more on satellite beams for communication.
Our competitor, China, has covered its entire nation, including 90 percent of villages, with 5G network. In contrast, the U.S. is lagging, risking wider technology gaps without timely spectrum auctions.
Wrapping Up
By auctioning the spectrum and other federal assets, we can drive progress, prosperity, and reduce the national debt, projected to cross $40 trillion. The sale represents a advantageous transaction both for the economy and the taxpayers. Who could possibly object?