Trump’s infrastructure program sounds like a con, smells even worse!

❝ 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.

You should immediately ask three questions about all of this.

❝ First, why involve private investors at all? It’s not as if the federal government is having any trouble raising money…

❝ Second, how is this kind of scheme supposed to finance investment that doesn’t produce a revenue stream?…

❝ Third, how much of the investment thus financed would actually be investment that wouldn’t have taken place anyway? That is, how much “additionality” is there?…

❝ …All of these questions could be avoided by doing things the straightforward way: if you think we should build more infrastructure, then build more infrastructure, and never mind the complicated private equity/tax credits stuff. You could try to come up with some justification for the complexity of the scheme, but one simple answer would be that it’s not about investment, it’s about ripping off taxpayers. Is that implausible, given who we’re talking about?

Paul Krugman has it wired. Trump chumps thought they were one up on the system voting in someone they knew was a crook and a liar. They were silly enough to believe he was “their” crook and liar. They missed the lecture on Capitalism 101 which states the greedy bastards in charge aren’t interested in sharing the wealth – except with co-conspirators.

That doesn’t include you.

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