Figure 2 describes one way (alternatives exist) to finance new construction of an infrastructure (Figure 1) intended for persons with a projected minimum 30-year labor participation life. It assumes a political consensus has been reached that:
1. New infrastructure is needed to rejuvenate the ability of the United States to successfully and peacefully compete with economies with much larger populations in the 21st century and beyond.
2. Today’s heavily indebted, cash-poor government does not have the resources to finance a massive infrastructure effort without the participation of private capital.
3. New taxes are out of the question. The vast majority of people are hard pressed as it is, and taxing the rich only would not yield the magnitude of capital needed to ensure success. Instead, a new Infrastructure Investment Bank backed by the Federal Reserve that offers a steady, safe and competitive return might encourage wealthy individuals, pension funds, insurance companies and other institutions with idle surplus cash to invest in it.
4. One of the reasons why the gap in the distribution of wealth exists is because a very small percentage of the population owns the bulk of the means of production while the rest essentially work for them. Accordingly, the remedy is to create a separate path for participating workers to accumulate enough wealth to see them through a comfortable retirement without social security.
5. The Death Valley canal is a necessity, not an extravagant pipe dream; it would be wide and deep enough to allow at least two shipping lanes between the ocean and a new deep-water inland port roughly 200 miles east of Los Angeles, complete with new railroads and freeways connecting it to corresponding existing networks.
6. The Infrastructure Investment Bank would finance it all, including the transition to exclusive solar generation in existing sun-drenched cities throughout the Southwest to support expansion of Plan A to a network of dry lakebeds and canals adjacent or in close proximity to Death Valley.
7. Existing power utilities would be gradually and incrementally relieved of the responsibility to generate electricity. Instead, for a grandfathered limited time and a reasonable fee, they would continue to monitor, service and expand the existing grid as needed. After that they would compete with other independent contractors.