The Obama administration has suggested the U.S. sell $22 billion in “unwanted” assets over the next decade to raise money. That is such a small figure that it is hardly worth mentioning. To put it in perspective, it is only about 5% of the annual Defense Department budget. The move is a public relations gesture, and nothing more.
The general idea is a fine one, however. That is, if the administration and Congress get serious about asset sales. A 24/7 Wall St. analysis shows that the government could sell closer to $700 billion in assets. Some the U.S. may not want to part with, but these are extraordinary times that require extraordinary measures. The federal balance sheet must be improved, many economists say, so that America is not mired in debt at the end of the decade.
Part of what the government could sell is valuable real estate. The Federal Reserve building on Wall St. is worth at least $750 million, based on the going price for office space in lower Manhattan. The New York Federal Reserve could relocate to New Jersey, as many financial houses have done to save money.
Hoover Dam’s electricity generation power would be worth $400 million to a utility. The real estate that forms Yellowstone National Park is worth nearly 10 times that. The U.S. gold supply is worth at least $600 billion, though that figure would be lower if the amount America owns hit the market all at once.
The idea that a sale of U.S. assets would bring down the national debt is a good one. The administration is just too conservative in its goals.
Douglas A. McIntyre
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