Trump's infrastructure scheme will help his business friends by privatization
Trump has long promised a $1 trillion investment program in U.S. infrastructure but it seems that the program will actually be an excuse to privatize for the benefit of his business friends.
|Trump's program would actually cut existing infrastructure programs, privatize the U.S. air traffic control system and provide incentives for public-private partnerships. As well, the Trump administration says it is considering paying state and local governments to sell of their public infrastructure. Using a process called "asset recycling," states, cities and counties would lease assets such as roads and water systems to private equity investors in exchange for cash to build new infrastructure. The federal government would pay a bonus to state, or local governments who make such deals.|
"CUPE has previously explained, 'Asset Recycling' is a new phrase describing corporatization, marketization and privatization of government assets. An asset is 'recycled' when a government, corporation or bank either sells or borrows against its physical assets to get money for investment in new capital... Asset recycling is just another scheme driven by bankers and governments desperate to hide past failures of neo-liberal privatization policy."
“The megafunds aiming at American infrastructure investment, like a Saudi-backed $40 billion fund run by Blackstone, whose CEO Steve Schwarzman heads Trump’s business council, could buy airports or bridges, while local governments use the new cash to pay for the new projects—like pipes for Flint—that the private market can’t or won’t provide. In the long term, governments would be left with money-losing assets while Wall Street runs more lucrative public assets such as bridges, airports, utilities, and prisons.”A perfect example of what can happen with asset recycling is provided by Chicago's leasing of the city''s parking meters in 2008 to Morgan Stanley shoring up the city's operating budget in the short term but losing taxpayers nearly $1 billion over the 99 year of the terms lease.