{"id":200162,"date":"2021-06-22T18:25:00","date_gmt":"2021-06-22T23:25:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2021\/06\/22\/bipartisan-is-a-synonym-for-scam\/"},"modified":"2021-06-22T18:25:00","modified_gmt":"2021-06-22T23:25:00","slug":"bipartisan-is-a-synonym-for-scam","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2021\/06\/22\/bipartisan-is-a-synonym-for-scam\/","title":{"rendered":"Bipartisan is a Synonym for Scam"},"content":{"rendered":"

Why am I not surprised that the “Bipartisan” Senate infrastructure plan is primarily about giveaways to politically connected operators through privatization<\/a>.<\/p>\n

Privatization is where private operators are paid to take ownership of public assets.  (Think Chicago parking meter deal fiasco)   <\/p>\n

It’s always about sacrificing the public weal to the altar of private profit:<\/p>\n<\/p>\n

\n

\u2026\u2026\u2026<\/p>\n

But the really scary piece is labeled \u201cPublic private partnerships, private activity bonds, and asset recycling.\u201d In the name of building world-class infrastructure, these lawmakers would sell it off in fire sales to private financiers. We have lots of experience with infrastructure privatization that strongly suggests it should be avoided. <\/p>\n

There was a time when Democrats did oppose such schemes; it was during the Trump administration. To the extent that Trump had an infrastructure vision, it was rooted in privatization. Wilbur Ross and Peter Navarro, who would each take high-level jobs in the Trump administration, wrote a paper<\/a> before the 2016 election outlining their vision: $1 trillion in investment provided by private bond buyers, who would be guaranteed a tax credit to buy the bonds, interest on the debt, and an equity stake with dividends (with up to a 10 percent profit margin). It adds the usual song and dance about how private enterprise is so much more efficient than the public sector, therefore saving money overall.<\/span><\/p>\n

It takes about two seconds to recognize how ridiculous this is. The government doesn\u2019t require a 10 percent margin on equity, tax credits, and interest payments. That\u2019s a layer of profit that gets built into the expenditure. Governments usually contract out design and construction to private contractors, but there are only two ways for these companies to reduce ownership and operation costs below what the public sector would spend, while still being profitable. They can cut back, either on safety or labor or maintenance; or they can extract a lot of profit from users of the infrastructure (think toll roads). If the infrastructure isn\u2019t inherently profitable, like a bridge in New York City or a toll road in southern California might be, the upgrade probably won\u2019t get built.<\/span><\/p>\n

Democrats rightly and loudly objected<\/a> to giving up public assets to private investors at the time. The biggest money-makers would be favored, they said, and less lucrative projects in rural or impoverished areas shunned. Governments would not only lose ownership but democratic control over roads, water systems, electrical grids, and who knows what else. As companies manage costs, it could lead to less resilient, more dangerous infrastructure. And the public would have a high likelihood of being gouged.<\/span><\/p>\n<\/blockquote>\n

Bipartisanship is most often a beard used to defraud the taxpayers,<\/p>\n","protected":false},"excerpt":{"rendered":"

Why am I not surprised that the “Bipartisan” Senate infrastructure plan is primarily about giveaways to politically connected operators through privatization. Privatization is where private operators are paid to take ownership of public assets.  (Think Chicago parking meter deal fiasco)    It’s always about sacrificing the public weal to the altar of private profit: \u2026\u2026\u2026 But …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[998,970,969,1283,1020,978],"tags":[],"class_list":["post-200162","post","type-post","status-publish","format-standard","hentry","category-congress","category-corruption","category-evil","category-infrastructure","category-legislation","category-politics"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/200162"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=200162"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/200162\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=200162"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=200162"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=200162"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}