To Donald Trump, the greatest inequity occurred in 2008, when the Bush administration bailed out the financial industry by creating $1 Trillion, in fiat money which it, then, loaned to them, at super low interest, and then borrowed the money back at higher interest. This spread not only allowed the financial industry to keep operating, without losing even a dollar in their year end bonuses, but to keep a trove of foreclosed real estate to liquidate, slowly, at enormous profits, as the economy improved. The financial industry may be stronger, today as a whole, than it was at the time of the 2008 crash, resulting in what may have been the greatest transfer of wealth from the middle class to the wealthy in the history of the nation.
The great inequity, to Trump, is that while the financial industry benefited, his own industry, the construction industry, was not granted an equal opportunity to dine at the public trough.
Trump's new plan will correct this injustice by loaning the construction industry $1 Trillion with which to build new infrastructure which will then be operated at fees, to the public, in order to repay the Government loans. This way the construction industry ends up with $1 Trillion in fungible assets and the Government gets repaid what it has loaned.
PPP's (public-private partnerships) only interest investors when there are tolls or fixed state payments involved. The number of infrastructure projects that fit that framework are limited.
ReplyDeleteOver the last quarter-century, the US has only had 36 privately financed road projects, according to the Congressional Budget Office. Of those, 14 are complete, three have declared bankruptcy, and one required a public buyout. The rest are still in construction stage. Not a great record.
Under Trump, corruption is sure to reign.