from Chapter 37: Was America Built on a
House of Cards?

Debt, n. An ingenious substitute for the chain and whip of the slave driver.”
~ Ambrose Bierce (1842-1914?) American satirist and journalist – The Devil’s Dictionary, 1911.

Was Twentieth Century America built on a mountain of debt?

Federal Government Infrastructure

How about the Interstate system with all the bridges? Were they ever paid for? We are now in need of repairing and/or replacing some bridges, but did we ever pay for them the first time?

The Interstate Highway system is the largest public work project ever completed in the U.S. Its construction started in late 1956 and continues today. The original system was budgeted at $25 billion and was to be completed in 12 years. However, the originally planned interstates were completed in 1992, taking about 36 years to complete. Alas, the costs grew, and soon the price tag ended up being $114 billion (adjusted for inflation, the cost might approach $1 trillion.) The actual funding of construction was 90% federal and 10% state. The feds financed the 90% with bonds to be paid back through federal gas taxes.

Only for the years 1956, 1957, and 1960 did the Federal Government balance the budget. Examining the deficits for the years thereafter, it is obvious that when the bonds came due, they were just paid off with new borrowing. So, in essence, we never paid for the Interstate system. In addition, we have been paying interest on the Interstate system ever since. Now, if the Interstate Highway system is the largest public works project in our history and it is not paid for, I think that a logical conclusion could be reached that little of our Federal Government infrastructure was paid for after about 1930, when Deficit Spending became a national addiction.

Continued on page 206 of GOVERNMENT OF DECEIT.