Newt Gingrich writes a column at Human Events about how to best rebuild the Minneapolis I-35W bridge. He argues that once the recovery effort is complete and the rebuilding effort begins, there is no reason to raise taxes in a reflex reaction to the failed bridge. Instead, the best way to proceed is to use positive incentives to unleash American ingenuity and productivity. He cites three examples of success in using this philosophy:
1. I-10 Reconstruction after earthquake in Northridge, CA. In 1994, an earthquake destroyed one of the most heavily trafficked freeways in the nation. The initial estimate of the rebuilding effort was 26 months at a cost of $1 million per day for each day I-10 remained closed. By utilizing emergency powers, the Governor (Pete Wilson) suspended some beauracratic requirements and added an incentive/penalty condition: for each day early the project was completed, the contractor would receive $200,000; for each day late, the contractor would be penalized $200,000. The result? The job was finished 74 days early and almost $60 million under budget.
2.In April 2007, a gasoline tanker truck crashed into a ramp in Oakland that connected the East Bay to San Francisco. Estimated length of the repairs was 50 days at a cost of $5 million. Again, the government acted quickly, and incentives were set up. The result? The job was completed in 17 days -- three times faster than estimated -- at a bid of less than $1 million. (The final payout was just over $5 million because the contractor collected the full $5 million bonus for finishing so quickly, but "it was a small price to pay for such a fast recovery".)
3.The I-15 corridor reconstruction in Utah. In the mid 90s, the interstate system near Salt Lake City, Utah, was in need of serious reconstruction, including the construction or reconstruction of 130 bridges and three major junctions with other interstate routes. The
expected time for the project was originally slated to be 10 years, but the project needed to be finished before the upcoming 2002 Winter Olympics, just six years away. Incentives for this project totaled up to $50 million for timely completion, quality and traffic maintenance. The result? The entire project was completed with a time savings of almost six years and a cost savings of $32 million!
Gingrich's argument is that in circumstances like this -- with big money and big time constraints looming -- we need to unleash American ingenuity and productivity through positive incentives to private companies rather than to raise taxes (which is already being considered in Minneapolis) and allowing the bloated government beauracracy to run things.
An unrelated but still applicable illustration is his now-famous FedEx example. Click here to watch. It's humorous, and completely accurate.
Newt is considering a run for president. He would be severely demonized by the liberal left (as he was while Speaker of the House), and one of the current crop of candidates might yet step forward with true conservative plans, so he may decide not to enter the race. But, with lots of great ideas on how to utilize American resources to the fullest in order to benefit the country, maybe he could return this country to its conservative (and successful) roots. It would take a major grass-roots effort from the American people to accomplish it, but think what could be done if we had a true conservative President, as well as real leadership in the House and Senate: could we actually achieve lower taxes, more government accountability, secure borders, and success in the War on Terror? The liberal left would have conniption fit after conniption fit. It would be priceless to watch.
There's my two cents.
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