The federal government owns multiple trillions of dollars of federal assets — from land, to buildings, to patent rights, to mineral rights, to immigrant visas, to oil fields to trucks and trains and unused office furniture equipment.
The government could earn well over $1 trillion and perhaps as much as $10 trillion by selling off these assets that are simply hoarded (figuratively) in the dark and dusty basement of government buildings. These assets could then generate added annual tax receipts once they are utilized for productive purposes.
I'm not talking about selling the Washington Monument or Yellowstone National Park. The sales could and in most cases should be limited to American citizens and American businesses.
I'm referring to non-environmentally sensitive properties that could be put to use growing our economy and using the money to retire some of our $35 trillion national debt.
It's a win-win for taxpayers, our children (who will be handed a lower debt obligation) and the U.S. economy.
Some of the most valuable assets that should be put on the auction block immediately are tracts along the electromagnetic spectrum. The spectrum contains the invisible airwaves that power cellphones, Wi-Fi and other wireless technologies — such as 5G communications.
In the past, auctioning spectrum rights to telecommunication firms and tech companies has raised more than $100 billion for the U.S. Treasury.
Congress could raise at least another $100 billion in another round of spectrum auctions. This would sell or lease space that the military doesn't need and that other government agencies (such as local police and fire departments) are fine without.
This strategy would help stimulate the economy in two ways. First, as in the past, the revenues raised can offset any real or imagined revenue loss from the imperative of making the Trump tax cuts permanent.
A new report by the economic consulting firm National Economic Research Associates finds that auctioning 100 megahertz of midband spectrum that's licensed for 5G will boost U.S. GDP by more than $260 billion and create 1.5 million new jobs.
On at least four previous occasions, Congress has used dollars raised from spectrum auctions to offset tax cuts in reconciliation packages. That's exactly what they should do again.
"Effectively allocating spectrum to meet the ever-growing need is critical to promoting American innovation and protecting our national security," Rep. Richard Hudson, R-N.C., said at the first House Energy and Commerce Subcommittee on Communications and Technology hearing of the new Congress on January 23.
Hudson, chair of the subcommittee, points out correctly that the U.S. government has been conducting spectrum auctions for the past 30 years, and they have a track record of success. They are much fairer than giving bureaucrats the power to decide who gets spectrum, which can lead to allocations that are politically or ideologically motivated, with the result that spectrum would be used inefficiently (or not at all) by beneficiaries.
Auctions are open and transparent, minimizing the risk of shady backroom deals. They ensure that the spectrum goes to those who value it most and can use it most effectively.
Anyone concerned about ensuring the uninterrupted connectivity of our electric grid system and our daily internet connection should be all for these auctions — especially as the world goes wireless, communicating less through cables and more through satellite beams.
This is also critical to maintaining our technology lead against the Chinese communist government. One Chinese news agency reported last July that "China's 5G network now covers every city and town in the country, as well as more than 90 percent of its villages." We are dangerously lagging behind, and without timely spectrum auctions, the gap will grow wider.
Auctions of the spectrum and other federal assets will drive progress and prosperity — and raise revenue to pay for tax cuts or retire our debt that is soon to eclipse $40 trillion. What's not to like about that?
Stephen Moore is a senior fellow at The Heritage Foundation and a co-founder of the Committee to Unleash Prosperity. His latest book is "Govzilla: How the Relentless Growth of Government Is Devouring Our Economy." Read Stephen Moore's Reports — More Here.