Long-term benefits of rail to Dulles remain endless
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Now that taxpayers have written checks to the IRS, it's an ideal time to take count of our hard-earned dollars at work. Never in this country's history has there been such a deployment of taxpayer capital in such a short amount of time. Given the current economic debacle, most would agree that government assistance was necessary. But the government injections have been so large and the disbursements so random that measuring and evaluating the effects proves difficult.
Everyone is aware that a significant portion of government relief was directed at the teetering financial sector. The intention was to shore up the capital base of banking institutions and entice them to extend credit to needy consumers and businesses. But while the net effect of these injections is still evolving, unintended ancillary beneficiaries have already emerged. The most glaring are the billions in bonus payments issued to many executives and high-level employees working at companies propped up by the government. There's no doubt how infuriating this is to anyone other than those cashing the checks. But there's nothing taxpayers can do now that the money is spent. So to keep some sanity, I chose to focus on the other deployments of my taxpayer dollars by the government that might actually come to benefit the public. One example came to me on my latest Metro ride.
The controversy regarding the extension of the Metro to Dulles International Airport has been intense. Northern Virginia residents know that construction of such a massive project will cause disruptions and many cringe at increased congestion. Nevertheless, the Obama administration has been seeking "shovel ready" projects to help spur economic growth and the Metro's proposed Silver Line to Dulles was ideal. So, on March 10, U.S. Transportation Secretary Ray LaHood sealed the fate of its completion by committing $900 million of federal funds to the project.
The construction of this project promises to further aggravate the already congested area for the next six years until it's completed, but the long-term public benefit of this line is not in question. Many of those dealing with this disruption eventually will receive the benefit of higher property values and decreased transportation costs. In my mind, this is one example of the long-term benefits of the recent government stimulus, which many people fail to recognize. Are the convoluted side effects of government assistant programs, like large bonus payments to executives of companies that received Treasury Asset Relief Program (TARP) money, reasonably offset by the public benefits, such as a new Metro service? It's at least something to consider if you look at the other side of the coin.
Joseph Warren is chief executive officer and founder of Warren Capital Group, a registered investment advisor headquartered in Washington, D.C., Warren Capital Group provides investment management services to private clients and institutions throughout the country.
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