50s: Starting with a storage ring

Chapter 585 Demolish It

"I've heard of this theory, but I don't really understand how it's implemented."

"There are already some books on the relevant theories. You can take some time to study them when you have time in the future."

"However, the most pressing issue now is to resolve the practical problems of the Port Authority of New York and New Jersey."

"My suggestion is to take it in several steps."

"First, we will establish a new department and incorporate the decision-making, planning, review, and supervision functions of the former Administration Bureau into the new department. This new department will be the main body of the Administration Bureau in the future."

"Then, while other operating departments remain unchanged for the time being, all public institutions will be gradually separated out in stages and batches, which is to say, privatization."

"The first batch of units to be divested are the ones most prone to losses, such as Guardia Airport, which has been losing money for a long time."

"The second batch consists of units that can barely maintain operations; the last batch consists of units that can consistently generate profits."

"As these operational units are gradually divested, the state government will be able to reap substantial funds, and the administration will be able to gradually downsize and reduce expenses."

"Until the very end, only management functions such as decision-making, planning, review, and supervision remain, forming a pure management agency in a small government model."

What attracts Cuomo most to Sun Zhiwei’s theory is twofold: the large influx of funds and the reduction in government size and spending budget.

These two points are crucial for the state government he leads in dealing with the current economic recession.

Historically, he addressed the economic recession by simultaneously lowering tax rates and balancing the budget.

However, while lowering tax rates stimulated the economy, it also reduced state government revenue, thus prolonging his time to deal with the recession.

If a large sum of money were available, it would undoubtedly have a huge positive impact on the economic strategies he was about to implement.

Their original plan for dealing with the Port Authority of New York and New Jersey was to sell some of its assets.

However, the method of introducing a small amount of private capital can only keep the administration afloat, but it does not help the state government at all.

As far as he knew, decades after the original history, the Port Authority of New York and New Jersey was gradually infiltrated by capital.

This led to the creation of a behemoth that monopolized the entire transportation industry in New York and New Jersey.

They formed a self-contained, unbreakable alliance of interests, which grew so powerful that the state governments of the two states were powerless to control them.

Although Sun Zhiwei envied the original monopoly entity, he immediately lost interest when he considered that it would take decades to form a monopoly of that scale.

Let's dismantle this future behemoth first, and then take a big bite out of it.

There was actually another important reason he didn't say explicitly, but he believed Cuomo was well aware of it.

That is, if this model is followed and the Port Authority of New York and New Jersey is fully privatized, it will definitely gain the support of all capital.

Because in any country, the transportation industry is a high-quality industry.

The fact that the various entities under the Port Authority of New York and New Jersey are not profitable under the direct management of the state government does not mean that they are not profitable under the management of capital; these are two different things.

In a modern metropolis like New York, operating large airports, ports, highways, bridges, and tunnels can actually result in losses. Capitalists would laugh their heads off at this story, but this is the reality for the Port Authority of New York and New Jersey.

From any perspective, Sun Zhiwei's suggestion is beneficial to the state government. As for the concept of state-owned assets, sorry, that doesn't exist in the United States.

After saying all this, Sun Zhiwei sat down on the sofa and drank coffee with peace of mind, trusting that Cuomo would make the right choice.

He himself will also receive the rewards he deserves, because his method not only solved Cuomo's most pressing problem, but also provided tremendous help to his team's governance.

If Cuomo fails to reciprocate by providing Sun Zhiwei with the benefits he deserves, his staff will inevitably become demoralized.

Cuomo sat next to Sun Zhiwei, pondered for a long time, and finally made up his mind.

He looked up at Sun Zhiwei and said, "Mr. James, your suggestion sounds particularly good. I need to discuss it with my staff, which will take about 1-2 hours."

"In the meantime, I'll have my secretary show you around the neighborhood. What do you think?"

"Sure, but I don't need anyone to accompany me. Let me explore this ancient city on my own."

He looked up at his watch and said, "It's 9 o'clock now. I'll be back here in two hours. I hope to hear good news from you then."

Afterwards, Sun Zhiwei left the state government building and went out onto the street, where he enjoyed the scenery and blended into the crowd.

The population count for downtown Albany is low, but that doesn't mean there are actually very few people there.

Because most residents here work in the city but live in the suburbs, the urban population count is relatively low.

It's actually quite lively here during the day, but because it's located in the New York State metropolitan area, the overall economic situation is better than that of most cities.

Therefore, the pace of life here is slower and the work pressure is relatively lower.

At the same time, because the surrounding area has a large number of colleges and universities, there is a large student population here.

As the saying goes, "When the granaries are full, people know etiquette," and regions with higher levels of education also have a lower chance of violent crime.

Overall, Albany offers comfortable living conditions, a low cost of living, and good security, making it a suitable city to live in.

While Sun Zhiwei was strolling around the area alone, in his office at the state government building, Governor Cuomo had already gathered his team of staff to discuss the 'small government' solution proposed by Sun Zhiwei.

Cuomo comes from a humble background, so many of his advisors are also from ordinary backgrounds. Their governing philosophy leans towards limiting the power of capital in order to reduce the wealth gap.

Therefore, when Cuomo presented Sun Zhiwei's solution, it was met with opposition from many people even before it was discussed.

However, the current situation is no longer a matter of governing philosophy, but rather about overcoming difficulties.

If they cannot solve the economic problems, their approval ratings will drop.

Now that Cuomo is in his second year in office, if he does not take effective measures on the economy, he may not last until the state election.

Cuomo's political future was the future of his staff, so after Cuomo seriously presented the problem, everyone compromised.

(End of this chapter)