A Citizen’s Guide

Our “capitalistic” system simply means that we the people create the economy, not the government. However it doesn’t work when the growing tendency is to depend on government for our basic needs. Certainly there will always be those who cheat. It doesn’t matter whether they are operating in the private sector or the government. It is a flaw in that person’s behavior, not necessarily a government flaw. However, every time there is such a behavior error, everyone wants to create a law that will prevent that. It won’t.

Growing up during the Depression, money was short. My dad would make excuses to my mother by saying, “You know that money is the root of all evil!” Mother would quickly respond, “No! The love of money is the root of all evil.”

The economy grows when more money circulates through the private sector and less through government. Naturally, elected officials want to please their own constituents and struggle to keep a statewide perspective. I recognize their challenging assignment. However, I firmly believe that less is more. The private sector pays their share of taxes to the government. Certainly we need government. However, much of the money government spends is not just to fund their operation but is used to do things that could be done better by the private sector, including charities. If we could keep more of our money, we could do these things without government assistance.

Alaska is a new state and a great state with great people. The future can be very bright or not. Alaska is very rich in resources but continues to be at the mercy of the federal government. We should be entitled to some open doors. Other states were able to establish roads to resources when the laws were not so restrictive. It takes loads of money now to provide access to our resources and the cost of getting them to market is excessive. Given the opportunity, however, the private sector will do that. The resources are worth it. The government stalls the process. Since this is a government of the people, a government problem is a people problem.

The recent debate regarding taking our gas to market is an excellent example. It is true that we have made mistakes over the years and that this time we want to do it right. Time is money as well. Now the government take is of intense interest. It costs money to run a state. To get the money we need, we need investment from the private sector. Where do these investment dollars go? They go to jobs and purchases circulating money through the economy while increasing the percentage of output and profits.

You would naturally think that the bigger percentage of take you can get for government is best. However, a larger percentage of a lesser number can reap less than a lesser percentage of a larger number. A recent concern at the federal level regarding the $8.2 billion in profits reported by Exxon is an example of misunderstanding economics. These profits, identified as excessive, were a 10.2 percent profit. That means that 89.8 percent of their gross revenues were spent on expenses like jobs and purchases contributing to a healthy economy.

The governor and his team have been negotiating for two years with the producers to reach an effective agreement to take our gas to market, one that is best for us and them. Although this contract is now a new issue for legislators and the public, a gas line has been around a long time, and distrust runs high. The producers must play a major role. Time is money. The “all-Alaska” gas line, which fashions itself as the only answer, can be an important participant in the process. However, a port authority is given an IRS tax exemption to be an enabler, not to compete in the marketplace. The port authority is also government.

The producer investment in the gas fields to bring our gas to market will be huge, not to mention the investment needed to keep the oil pipeline running. When accomplished, there will be lots of money for jobs and purchases benefiting Alaska’s public. The current negotiated plan provides for the highway route as well as a possible connection to an LNG facility in Valdez. We must all work together now! Time is of the essence.

Jeannette James is a former Republican legislator from North Pole.