In a quiet move that will make the few remaining devotees of limited government cry, a report is out that reveals Donald Trump’s plan to pump $1 trillion of new infrastructure spending into the U.S. economy.
Per The Washington Post, “Trump’s economic advisers have embraced a modified version of a theory some liberal economists have been pushing for years: that at a time of very low interest rates, increased federal spending on roads and bridges would actually pay for itself.”
No sweat, to get your “free” roads all that is necessary is $137 Billion in tax credits to companies that will “reinvest” $167 billion in the same projects and a mere $1 Trillion in total spending. As the Post describes it the wonderful plan will work like magic as follows, “That spending, then, would create jobs, with wages that would be taxed, and corporate profits, which also would be taxed.”
Sounds just as reliable as the old 1980s DREAM AWAY weight loss pills ” Lose weight while you sleep, without tiresome exercise”
“The Trump Plan would also provide maximum flexibility to the states and employ incentive-based contracting where appropriate to ensure projects are on time and on budget.”
You can be sure that PPP will stand for Public Risk and Private Profits as it always does.
Lets look at the plan itself written by Trump economic advisors Professor Wilber Ross and Peter Navarro. Another milestone of moral hazard using other people’s money.
“For infrastructure construction to be financeable privately, it needs a revenue stream from which to pay operating costs, the interest and principal on the debt,and the dividends on the equity.”
“Under Trump’s plan—at least as it’s written (more on that in a minute)—the federal government would offer tax credits to private investors interested in funding large
Hey, your on the Trump Toll Road to Prosperity. and its a PPP!
infrastructure projects, who would put down some of their own money up front, then borrow the rest on the private bond markets. They would eventually earn their profits on the back end from usage fees, such as highway and bridge tolls (if they built a highway or bridge) or higher water rates (if they fixed up some water mains). So instead of paying for their new roads at tax time, Americans would pay for them during their daily commute. And of course, all these private developers would earn a nice return at the end of the day.”
