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<br />flood. The revised plan drastically reduces the previously planned <br /> <br />control of Bijou Creek floods. Since this revised plan cannot be <br /> <br />submitted to the Congress before next year, it will be subject to <br /> <br />another new and increased interest rate if the proposed principles <br /> <br />are adopted. And so ad infinitum. <br /> <br />It is most interesting to note that the proposed <br /> <br />principles apparently place no value on human life nor on human <br /> <br />suffering. Apparently these elements have no monetary value. <br /> <br />Having made these generalized unkind observations, I <br /> <br />would like to turn to a few more specific criticisms, including <br /> <br />the proposed seven percent discount rate. I do not purport to <br /> <br />fully understand the theoretical opportunity cost of federal invest- <br /> <br />ment as it relates to the discount rate, a rate actually described <br /> <br />in the principles as being at ten percent. This rate apparently is <br /> <br />borrowed from a study made by a Mr. J. A. Stockfisch in 1969 for' <br /> <br />the Institute for Defense Analyses. If in fact the average rate <br /> <br />of return on the investment of private capital is ten percent, <br /> <br />then the millions of Americans who annually invest their capital at <br /> <br />a lesser rate should be somewhat surprised. Why, for instance, <br /> <br />should Americans invest millions of dollars annually in treasury <br /> <br />bills which are currently returning less than four percent. Perhaps <br /> <br />all investors should hold out for a ten percent rate. or even <br /> <br />seven percent. The results on the American economy would be <br /> <br />-4- <br />