Rethinking America’s Wealth
As Congress once again locks horns over the federal budget with threats of shutdowns, stopgap measures, and partisan posturing dominating headlines - Americans are reminded just how paralyzed Washington has become when it comes to the national debt.
With over $36 trillion owed, and no credible bipartisan plan on the table, perhaps it’s time to ask not just how to cut spending or raise taxes, but how to tap into the vast, and largely idle, wealth America already owns.
We can erase a large part of our national debt by following President Andrew Jackson’s example and monetizing our country’s exceptional asset base. Consider the “book value” of the United States. How much is our federal land worth? The Smithsonian collection? Imagine if the federal government leased most of it.
Leasing the patrimony sounds like an extreme measure. But our national debt exceeds $36 trillion. Both political parties appear helpless to address it. Let’s think creatively.
America’s Federal Lands
The U.S. government owns 640 million acres — nearly 30% of the nation’s surface — with about 12% designated as national parks. Yet, while 250 million acres are leased for cattle grazing, the rate is a mere 10 cents per acre per year, far below private pasture rates averaging over $15, and dramatically less than cropland leases ranging from $150 to $250. This vast disparity means taxpayers are leaving tens of billions on the table annually.
Mining and oil and gas leases perform better, generating about $500 million and $9 billion per year respectively. These existing figures demonstrate the immense potential for increased revenue under current federal leasing frameworks.
Why stop there? America’s overseas protectorates, more than 2.5 million acres of mostly uninhabited islands in the Pacific and Caribbean, offer another valuable opportunity. Take St. John Island, for example: 60% national park, with land valued at around $400,000 per acre on average. Leasing just this park could generate between $250 million and $1 billion annually. Similarly, Governor’s Island in New York City, with land valued at $20 to $30 million per acre, could yield billions more.
Altogether, straightforward federal policy changes could unlock $100 billion to $250 billion in annual revenue, without selling a single square inch.
Federal Art and Cultural Treasures
Beyond land, America’s cultural patrimony also holds enormous, largely untapped value. Think of the art.
The Smithsonian’s holdings are estimated to be worth at least $5 billion, though some would be deemed priceless. Imagine leasing treasures to American corporations that wish to display them. Only 1% of the Smithsonian’s collections are on exhibit at any given time. The rest sit in storage. Let the Treasury generate another annual windfall with scrappy ingenuity. Doing the same with other federal museums will probably yield another $1 billion or $2 billion.
There is ample precedent for such moves. The federal government, during the presidency of Andrew Jackson, extinguished its national debt by selling large tracts of land. As the nation expanded westward, Jackson saw these lands as valuable assets to help reduce debt. By selling land to settlers and speculators, his administration generated enough revenue to pay off the entire national debt.
In 1835, the United States was completely debt-free - the only time in its history. Though controversial at the time, Jackson’s strategy prioritized fiscal responsibility and demonstrated how public assets can be leveraged to address financial challenges.
Preserving the Future While Funding Today
Some might argue for following Jackson’s example by selling, rather than leasing, our national assets. I believe that would be unwise.
Currently underutilized resources could generate substantial, ongoing revenue for taxpayers. By adopting creative leasing arrangements combined with strong preservation safeguards and robust collateral escrow requirements, we can unlock this value today while protecting these assets for future generations.
If we seize this opportunity now, we won’t need to keep relying on our descendants’ extraordinary wisdom to undo our ongoing national debt foolishness.
Michael Fertik
Entrepreneur | Venture Capitalist | New York Times Bestselling Author
