Saturday, November 19, 2016

As opposed to the Kanosian plan to stuff pensions

Infrastructure Build or Privatization Scam?
By Paul Krugman
Trumpists are touting * the idea of a big infrastructure build, and some Democrats are making conciliatory noises about working with the new regime on that front. But remember who you’re dealing with: if you invest anything with this guy, be it money or reputation, you are at great risk of being scammed. So, what do we know about the Trump infrastructure plan, ** such as it is?
Crucially, it’s not a plan to borrow $1 trillion and spend it on much-needed projects — which would be the straightforward, obvious thing to do. It is, instead, supposed to involve having private investors do the work both of raising money and building the projects — with the aid of a huge tax credit that gives them back 82 percent of the equity they put in. To compensate for the small sliver of additional equity and the interest on their borrowing, the private investors then have to somehow make profits on the assets they end up owning.

We are going to get fraud in the Swamp, lots of it. Krugman is a bit delusional about pension stuffing which was rampant in the stimulus of 2010. 

Nor does Krugman mention that California does not  do infrastructure, it is against the environmental, racial, and set aside laws to actually build something.  Nor does Krugman mention that interest payments at the Swamp just went up by $100 billion.

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