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This week Trump revealed his infrastructure plans include $1 trillion in public and private investment.

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Earlier this week (June 9, 2017), the White House said, “The president aims to give states and localities the ability to address their own critical infrastructure needs and to collaborate with private enterprises where it makes sense.”

In his speech at the Rivertowne Marina, Trump revealed his infrastructure plans include $1 trillion in public and private investment. Trump says it is “time to rebuild our country to bring back our jobs, to restore our dreams.”

There are few specifics of Trump’s infrastructure plans, but Bloomberg reports that over the next 10 years, Trump plans to dedicate $200 billion to federal funding and $800 billion to state funding.
“We will buy American and we will hire American,” Trump said, urging it is time for the United States to look out for its own best interests.

Referencing his dedication to infrastructure progression, Trump referenced his decision to approve the Dakota access pipeline, where other politicians did not.

An anticipated topic that Trump did not mention was the Brent Spence Bridge, which connects Kentucky and Ohio. The Brent Spence Bridge has been deemed “structurally obsolete,” and there is a very very large need to fund and build a sister bridge because the Brent Bridge will collapse in the very very near future.
Continuing Trump’s infrastructure conversation, the Kentucky Chamber has invited Elaine Chao, United States Transportation Secretary, to speak at the 2017 annual Business Summit at the end of July. Chao is a Kentucky resident and wife of Senator Mitch McConnell. Chao has an MBA from Harvard Business School was the CEO of United Way of America and Director of the Peace Corps.

My question is, according to Mrs. Chao/McConnell, the trillions of dollars required for the funding these essential infrastructure projects is going to come from private companies, tax breaks, etc., and I don’t understand how this is possible since I thought I understood where money comes from? Can you help me understand her concept because I don’t get it?

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Posted by Dennis
Posted on 06/10/2017 3:00 AM
175 views
Private answer

Washinton Post’s post.

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Posted by Dennis
Answered on 06/10/2017 3:24 AM
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    The money can come form the privates sector as the result of bank loans. Loans and invetment that would not happen without the encoragement of the “tax breaks etc”.

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    Posted by Dinero
    Answered on 06/10/2017 6:55 AM
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      So if I understand correctly, the private companies would “write off” the costs from their taxable profits, and/or be given by Uncle Sam some sort of tax expenditure that allows them to keep any “toll” money they might receive in the future. Would there be any regulations imposed upon the companies concerning the amounts charged for the tolls, or is a freedom from regulations on tolls part of the “encouragement”? So maybe this way the $trillion comes from the users of the facilities rather than Uncle Sam investing in our infrastructure?

      “The president aims to give states and localities the ability to address their own critical infrastructure needs” So Trump is NOT going to address our critical infrastructure needs at all, and this is confirmed by Mrs. McConnell when she explained that Uncle Sam supposedly has no money left to help after all the tax breaks under consideration are imposed, plus the wall, and the war machine build up.

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      Posted by Dennis
      Answered on 06/10/2017 5:40 PM
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        Dennis,

        Here is the list of infrastructure pipe dreams from all states. https://www.apmreports.org/story/2017/05/11/trump-infrastructure-projects

        Have you seen any interesting infrastructure project proposals in this list?

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        Posted by pliu412
        Answered on 06/10/2017 10:45 PM
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          “In December, the National Governors Association sent a mass email to governors asking them to send five projects that were ready to start. The email said the request was coming from Trump’s transition team and needed to be acted on quickly. Within a month, the governors responded with a wide range of requests.”

          I would hope that the elected state officials, whose job it is to noodle out the priority projects knowing that funding is going to be limited, would be looking after the interests of their respective states in a responsible way. Agreed?

          You Question: “Have you seen any interesting infrastructure project proposals in this list?” I think they all are of high value, although I have no direct knowledge. If these officials are working for their people, then the projects should be of value. If not, then who the fuck voted for these losers (as Trump calls them)?

          “Republicans, already lukewarm about Trump’s infrastructure plan, are wary of increasing the deficit.”

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          Posted by Dennis
          Answered on 06/12/2017 3:32 AM
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            Pliu, One of the more interesting projects. There is a lot of natural gas in the tundra. I’d rather see it used rather than the melting tundra release yuuuge amounts of methane into the atmosphere:

            “Alaska’s governor is asking President Donald Trump to lend his support to what he termed an “ideal” megaproject — the $45 billion Alaska gas pipeline — as the president moves ahead with his $1 trillion plan to rebuild the nation’s infrastructure.

            In a Feb. 7 letter addressed to Trump, Gov. Bill Walker also includes the ultimate federal wish list to help expedite the Alaska LNG project that seeks to sell huge reserves of North Slope gas to Asian utilities. Walker asks for a federal tax exemption, reduced federal oversight giving the state more control, and a $40 billion federal loan guarantee.”

            “But with Trump, who the heck knows what that boy will do,” Persily said.

            https://www.adn.com/business-economy/energy/2017/03/04/alaska-governor-asks-trump-to-throw-his-weight-behind-alaska-lng-project/

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            Posted by Dennis
            Answered on 06/12/2017 4:19 AM
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              Someday voters are going to wake up and realise that public and private partnerships are the same as KFC and Mcdonalds building any kitchen you want in your house for free. Then charge you for the next 50 years to use it.

              It’s nothing but rent seeking by the rentier class. All currency comes from the same place to pay for it the monopolist and all the skills and resources needed to build it comes from the same place.

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              Posted by Derek Henry
              Answered on 06/13/2017 6:55 AM
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                Derek Henry – “all currency comes from the same place”? Is that a MMT view?

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                Posted by Steve W
                Answered on 06/13/2017 8:35 AM
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                  Derek nailed it. Trump will happily sell off public assets.

                  These infrastructure projects could easily be funded by government issued currency. The only limitation would be availability of workers, resources, machinery to accomplish.

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                  Posted by Common Cents
                  Answered on 07/17/2017 1:05 PM
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                    That does sound like a MMT view and, of course, it is false.

                    Private corporations don’t have the “right of way” for lack of a better term to build infrastructure and all that jazz as that is the territory of the “commons” masterminded over by the mostly inept government, hence you need a partnership of skill + money. And also because maximizing value to the consumer/user is what private companies do best, not government agencies. I would prefer outright privatization but the government is inept at even managing that and preventing rentier abusers or boondoggles like all the endless sports stadiums that will never be paid off.

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                    Posted by MachineGhost
                    Answered on 08/02/2017 6:03 PM
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