Property for the People

Federal land in Utah (Peery/AP/WSJ)

One of the first moves that a financially distressed company makes is to sell off unproductive assets to pay down its debt. Economist Thomas Sowell says that strategy should apply to the Federal government, which is not realizing revenue from its vast landholdings:

Some of that land—such as military bases—is used to house the government’s own operations. But the great majority of that land is not.

The rest of this government-owned land is so vast that there is little to compare it with—except whole countries. And not small countries like Belgium or Portugal. The amount of land owned by the National Park Service alone is larger than Italy. The land owned by the Fish and Wildlife Service is larger than Germany. The land owned by the Forest Service is larger than Britain and Spain combined. The land owned by the Bureau of Land Management is larger than Japan, North Korea, South Korea and the Philippines combined.

The idea of selling huge amounts of government-owned land is not new. Before the federal income tax was created in the early 20th century, land sales were sometimes a significant source of federal government income in the preceding two centuries. The prospect of large-scale land sales was considered during the Reagan administration, but the political opposition was too strong.

As of 2015, government-owned lands were valued at $1.8 trillion by the Commerce Department.

$1.8 trillion, even if adjusted higher from 2015 to current dollars, will hardly put a dent in the national debt of $36 trillion. However, it would be a mistake to limit the financial analysis of government assets to market values equivalent to undeveloped land.

Once these assets are sold, no longer will they be drains on the Treasury for their maintenance and security but contributing value to the economy as sites for residences and businesses. And with future positive contributions come future taxes.

After all, the entire United States west of the Mississippi was once as useless as Federal land is today. If Federal lands were to be used to their full potential, who knows what marvels may ensue?