The National Mall’s Reflecting Pool is a national embarrassment. President Trump has ordered emergency repairs to the algae-choked water feature, a decision that looks like a knee-jerk reaction to bad optics rather than a sound fiscal policy. This is not a pandemic or a hurricane. It is a puddle of green sludge.
The White House did not disclose the cost of the cleanup, but one can safely assume it is not cheap. Taxpayers will foot the bill for what is essentially landscaping. In the City, we call this a discretionary expense. And in the current climate, with inflation still sticky at 4% and the bond market twitchy, every pound counts.
The timing is also suspect. A vandalism arrest was made in connection with the pool. Suspicious. Convenient. The administration is framing this as a restoration of dignity, but the only thing being restored is the president’s polling numbers.
Let us consider the opportunity cost. The same amount of money could reduce the deficit, fund infrastructure, or cut taxes. Instead, we are subsidising algae removal. This is the sort of government inefficiency that sends investors fleeing for safer havens.
The bond market is watching. If the US Treasury starts issuing debt for ornamental water features, do not be surprised if gilt yields spike in sympathy. Fiscal discipline begins at home, and the Reflecting Pool is no home for federal funds.
