Transportation, The Highway funding trustStudent’s Name

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Q1.The Highway funding trust was created to ensure the systems financing through an account mechanism in the federal budget that comprises two separate accounts one for the highways and other for mass transit. All the fuel tax was transferred to the trust fund and all general fund revenue returned to the highway trust. This could help reshape federal, state and local decisions’ on how to spend transportation funds. Trust fund programs are supplied at least 90% dedicated revenue from user fees or excise taxes. In a current survey it was noted that the highway trust fund could not support levels of investment for transit and highway program (Green, 1992).

Fuel taxes provide a stable and predictable level of funds because highway fuel consumption varies yearly. Fuel taxes acts as a revenue/source of highway funding from those who benefit from expenditure that the taxes finance (citizens).The fund has to be sustained to increase trust fund revenues that are inadequate to meet needs, by raising the fuel excise tax so that all users pay their fair share. It has also emerged that per mile charges would be an effective way of funding the trust since fuel consumption also depends on it.

PROS: About 80% goes to government grant for construction and rehabilitation of existing roads and safety programs. It helps reduce cost of borrowing. Higher rates of fuel taxes are warranted to pay costs of importing and burning oil that is not reflected in the market price. It also encourages development of renewable domestic and less pollutant fuel sources.CON: It distorts market prices and causing producers and consumers to allocate personal and business spending inefficiently. It Creates Horizontal inequalities as individuals who use vehicles to job tend to spend more on gasoline than others at the same level of income.

Q2Sam Walton the late founder of Wal-Mart had a vision and economic model that was based on low price directly proportional to high volume business model. He incorporates the selling of things cheaper so as to generate profit through volume rather than high mark up. To make an impact, companies realize that they have to rethink their processes and factor in sustainability. Wall mart amazed the logistics world by committing to reduce the energy needs, Packaging across its global supply chain and carbon dioxide omission. This will spur suppliers and other companies to develop manufacture and source in more environmentally social responsible manner

In terms of logistics wall mart has consistently maintained its growth by devoting significant resources, maintenance of its distribution and data networks? It used the Universal Product Code to increase amount and quality of data being tracked. Wall mart recently unveiled plans to measure the sustainability of every product it sells through substantive information to consumers about sustainability and lifecycles of the product they purchase. It will also be guided by its logical strength of numbers to increase large influence in area beyond discount retailer. (Soderquist, 2005)

Wall mart has virtually and physically positioned itself as a discount retailer but also a regulatory agency. Its effort in product efficiency, supply chain transparency and disaster response has greatly influenced public policy. It policy to reduce price and increase volume has created a mile race by its competitors to try and fill the gap. The company always has a gender of meeting the maximum profit mostly through innovation.

Reference

Soderquist, D. (2005). The Wal-mart way: The inside story of the success of the world’s largest company. (pp. 152-160). Illinois: Thomas Nelson Inc

Green, M. J. (1992). Changing America: Blueprints for the new administration. (pp. 426-568). Canada: New market Press.