Scene: Jordan calling JC about meeting to review a communications proposal.  POTUS asked Jordan for ideas how to convince politicians and the public that it would be a good idea to fund rebuilding US infrastructure by fixing the price for gas and diesel fuel.  Original conversation with POTUS Entries #104, #105.

Jordan:  “JC, are you ready to review the communications proposal for POTUS?”

JC:  “Jordan, send me what you have and let me look at it first.  You know I like to spend time reviewing ideas before making comments.  Besides, I have some errands to run.”

Jordan:  “Alright, I’ll send an email later today with some of the ideas.  When I get another section drafted, I’ll send that.  You review.  Then can we talk, please?”

JC:  “I know we can talk but yes we may talk.  You are finally beginning to understand how to work with other people.  It’s taken a while but I guess old guys can learn.”

Jordan:  “Old.  If I’m old, then what are you?”

JC:  “Younger than you.  I’ve always been younger than you…and probably always will be, don’t ya think?”

Jordan:  “OK, you win.  I’ll email a draft of some ideas later today.”

JC:  “OK, bye.”

Scene: Jordan begins drafting marketing-like plan for POTUS.    

(Jordan finds talking to himself helpful.) “I think most people understand that infrastructure needs to be rebuilt.  But will they understand why it makes sense to fund the rebuilding using a fixed price for fuel?  Fixed prices, especially ones set by government, are such a foreign idea to most US citizens.  Maybe the best approach is to pretend we are launching a new product or service.  Then use the ‘15 P’s’ approach.  The 15 P’s approach has worked well in the past.  Think I’ll try that.

Now, Jordan, listen.  Take your time and follow the steps in 15 P’s procedure.  Otherwise, you’ll get ahead of yourself.  You know it’s easy to take shortcuts.  And when you do, problems inevitably occur.  Remember the time you painted the room before you prepared it properly?  What a mess, and it took forever to fix.  Slow down Jordan and take your time.

Also, don’t worry about making all the wording perfect.  Remember, Jordan, this is a draft.  A draft…not the final presentation.  Make some notes for yourself.  OK, got it.

What’s the purpose of the project?  “Create a fund for rebuilding infrastructure throughout the United States – rebuild and/or expand roads, bridges, rail lines (especially for public transit), water treatment facilities, airports and communications infrastructure.”

How will you position the project with the public?  Why is the project necessary?   “Rebuilding infrastructure will help increase US competitiveness in the world economy and help increase the standard of living for all US citizens.”   (Note: good concept that probably needs some more explanation, but not right now.  Work on that later.)

Where will the projects be located?  Projects will penetrate all 50 states.  All states have a need to rebuild infrastructure although the mix of what’s needed varies by state.  For example, more populated areas need to improve or build new public transit, while more rural areas need to improve roads and communications infrastructure.  (Note: water and sewage treatment a major issue in all states.  Might be separate section.  Also, need to emphasize reusing water rather than just processing.)

How will we pay for the infrastructure projects?  Create a fund based on the difference between what the price of gasoline and diesel would have been in the open market and a pre-determined price.  Fuel prices will be fixed beginning a certain date.  The difference between a ‘free-market” price and the “fixed” price will be sent to a fund to pay for rebuilding infrastructure.  (Notes: (i) if there is a phase-in period for increased fuel prices, make sure it is very difficult to delay the increase.  Otherwise a constant political battle. (ii) Think about delaying the proposed fixed prices for gas and diesel until we can lay out clearly the extent of the problem.  If people understand, $5.00 per gallon gasoline might seem more than justified.)

How will the fund be protected against other uses?  Look what happened to Social Security Trust Fund?  Fund for infrastructure needs to be separated and protected from politicians diverting it for other uses…and not just some paper wall of protection as with Social Security.  The Highway Trust Fund seems reasonably well protected (Note: need to confirm.)  However, infrastructure extends well beyond highways and in some cases projects might appear to conflict with highway construction.  (Note: need to really make solid argument for public transit, especially rail, which is the most efficient in populated areas.)

How will the project be approved given the politics in Washington?  First step will be to conduct assessment of current state of infrastructure.  Second step will be to determine what is required to make the US and a particular geographic area more competitive.  Focus the project initially on assessing “Where is the United States today with respect to how inferior infrastructure is slowing economic growth and costing US jobs?  Make the assessment as objective and credible as possible.  Also make sure the public understands that the investment in infrastructure is a way to accelerate economic growth and create jobs.  (Note: consider measuring using ROI.  Doing so will address Republican concerns about ‘tax-and-spend.’)

What people should be involved in the project?  Mmmm, good question.  Maybe I should create a list of the types of people affected negatively by inferior infrastructure.  Just jot them down as they come to mind.  You can sort the list later.  OK, here goes:

• People who use public transportation, especially to get to/from work, medical appointments, school, etc.
• Businesses which rely on cost-effective and timely transportation for inbound and outbound freight
• People who use electronic means to communicate and/or order products
• Transportation companies that deliver products – FedEx, UPS, USPS, freight companies, railroads, etc.
• People who commute to work using private transportation. (Note: discourage more private use where possible.)
• Schools that use the Internet for some instruction, data gathering
• Homeland security, local police, fire, emergency services, etc.
• Farmers getting crops to market

OK, it’s a big list already and you’ve only scratched the surface.  In fact most everyone in the US is affected.  So now, how do we put a group together that is representative and not mired in all the politics?  The project seems as if it’s such an apolitical issue…and it might be since we’ve had the Revenge Revolution…but I am always amazed at how Washington gets bogged down in politics.  (Note: Be careful and watch out for animals wounded in the Revolution – they can lash out.)

Promoting the idea.  Maybe we should create a giant “chat room” and let people tell their own stories how inferior infrastructure affects them.  Let people sell themselves and each other on the idea.

OK, stop for now.  I need to send what I have to JC — I’m already a day late.  Make sure she knows it’s a draft and encourage her to comment on it.  Then I’m going to get a coffee refill and work on this some more.  Remember, Jordan, this is a draft and not the final document.

(To be continued)

(Readers: The assumed chronological date for most of the entries in this blog is after the expected 5^th revolution in the US.  For more background about  the expected revolution – labeled the Revenge Revolution – and author, please view entry #01.) 

(Readers: The assumed chronological date for most of the entries in this blog is after the expected 5^th revolution in the US.  For more background about  the expected revolution – labeled the Revenge Revolution – and author, please view entry #01.) 

Scene: POTUS called Jordan to discuss idea.  Call interrupted.  POTUS calling back.

Jordan:  “Yes, Mr. President.  Get the problem solved?”

POTUS:  “One of those events where I had to be there rather than any real problem.  Let’s get back to where we were.”

Jordan:  “We were discussing the idea of funding infrastructure using the gas tax.  But you never told me your specific idea.  What is it?”

POTUS:  “Simple.  Set fixed prices for gasoline and diesel fuel.”

Jordan:  “You talking about having the same price in all 50 states?”

POTUS:  “Yes.”

Jordan:  “What about the spot price of oil?  That get fixed also?”

POTUS:  “No.  Let the price of oil fluctuate.  Besides we cannot control the spot market for oil.  If we ever tried the Republicans and even some Democrats would scream.”

Jordan:  “So, when the price of oil in the spot market declines, the government collects more tax revenue.  And when the price of oil increases, the government collects less tax.”

POTUS:  “Simple, huh?”

Jordan:  “What about state taxes on fuel?  Do they fluctuate?”

POTUS:  “That’s up to the state.  If they want to gamble and collect more tax in down markets, that’s up to the state.  However, if they want to link to the Federal policy, states would receive a portion of additional Federal revenue.”

Jordan:  “When you first said fixed fuel price, I thought the idea was crazy.”

POTUS:  “Thanks.  I view that as a compliment.”

Jordan:  “Then with just a bit more thought the idea didn’t seem so crazy after all.  Knowing the price of fuel will be fixed takes away a lot of uncertainty.  But what about the long-term price for gas and diesel?”

POTUS:  “Build in some adjustment for inflation – use the WPI or some other measure.”

Jordan:  “As a cynical taxpayer…”

POTUS:  “Jordan, you cynical?  Since when?”

Jordan:  “I’ll ignore that.  As a cynical taxpayer how do I know the taxes will go for repairing and improving infrastructure and not just some other part of the Federal or state budget?”

Jordan:  “Make the use of funds part of the legislation.  Put some real restrictions on the use of funds.”

Jordan:  “You think the approach will generate enough funds?”

POTUS:  “Well, let’s start with pricing gasoline at $4.50 per gallon and diesel at $5.00 per gallon.”

Jordan:  “Wow.  That’s way above current market price.  Won’t the price be a shock to the economy?”

POTUS:  “C’mon, Jordan, you sound like a Republicant.”

Jordan:  “Well, pardon me, Mr. President.”

POTUS:  “I hear you but think about this.  When gas prices increase 50₵ a gallon, even $1.00 a gallon, what happens?

Jordan:  “A lot of ranting and moaning but really not much else.”

POTUS:  “That’s my point.  Not much else happens.  Now think about the benefits of eliminating uncertainty…really the benefits of creating certainty.”

Jordan:  “Car and truck manufacturers can focus on improving mpg without the concern that fuel prices will fall and make the programs less marketable.  Same with air craft manufacturers and railroads.  The concern over uncertainty has slowed the adoption of many fuel-saving technologies.”

POTUS:  “Consumers could buy knowing the price for fuel.  And most importantly, we would have the funds to begin rebuilding infrastructure.”

Jordan:  “Earlier in this conversation you asked me to play Mr. Marketer.”

POTUS:  “And so, Mr. Marketer, how do we get people to want to pay $4.50-$5.00 for a gallon of fuel…and be happy about it?”

Jordan:  “If we go back to what Tip O’Neill said about all politics being local, then we need to make sure all projects are highly visible locally.  And we need to cover many different locations.”

POTUS:  “We also need to include projects other than road related.  Otherwise we are going to miss key infrastructure areas that need to be rebuilt.”

Jordan:  “You talking about railroads and mass transit?”

POTUS:  “Yes, specifically rail-based transit.”

Jordan:  “What about communications infrastructure?”

POTUS:  “Yes.”

Jordan:  “Water and sewer projects?”

POTUS:  “Yes.”

Jordan:  “Airports?”

POTUS:  “Yes.  We’ve neglected each one of those areas.”

Jordan:  “Seems a bit unfair to put the burden on only the people who drive.”

POTUS:  “Seriously, Jordan, your brain gone dead?”

Jordan:  “Whadda mean?”

Jordan:  “Every product we buy has some cost included for transportation.  Even if you don’t own a car, you are paying for fuel riding a taxi, train or airplane.  Plus transportation costs affect grocery prices, clothing…everything.”

Jordan:  “Then your point is the cost of fuel is really a consumption tax.  The more you consume, the more you pay.”

POTUS:  “Exactly.”

Jordan:  “But isn’t the fuel tax also regressive?”

POTUS:  “True but if you really analyze the data, most every group of taxes when measured again real disposable personal income is regressive.  Besides, you have any other ideas how to fund rebuilding infrastructure?”

Jordan:  “Not right now.”

POTUS:  “When you do, let me know.  In the meantime we need to start an education campaign on why $4.50 and $5.00 fuel is good for consumers, businesses and the country.  And, guess what?  You are in charge of the campaign?  Got it?”

Jordan:  “Yes, sir.”

POTUS:  “Good.  Now you have a week to get a draft of the campaign together.  Say goodbye, Jordan.”

Jordan:  “Goodbye, Jordan…I mean goodbye Mr. President.”