"Trump's 'Contract with the American Voter' (get to know this document) stresses that his American Energy and Infrastructure Act 'leverages public-private partnerships, and private investments through tax incentives, to spur $1 trillion in infrastructure investment over ten years. It is revenue neutral.'
"What do 'public-private partnerships' and 'tax incentives' mean here? This report from Peter Navarro, set to be one of Trump’s leading economists, lays out the blueprint. The government would sell $1 trillion in revenue-producing bonds, needing only to supply an equity cushion to ensure everyone gets paid. Navarro estimates around $140 billion in government funding when all is said and done, which you could easily get through repatriation.
"Investors would get a tax credit to entice them to buy bonds, and Navarro claims that the tax revenue from new jobs created by the projects makes up for that cost. He also wants to contract out these projects, building in a 10 percent profit margin for the private contractor. Navarro claims that construction costs are higher when built by the government, and the private sector is more efficient.
"Does this sound familiar? It’s the common justification for privatization, and it's been a disaster virtually everywhere it’s been tried. First of all, this specifically ties infrastructure—designed for the common good—to a grab for profits. Private operators will only undertake projects if they promise a revenue stream. You may end up with another bridge in New York City or another road in Los Angeles, which can be monetized. But someplace that actually needs infrastructure investment is more dicey without user fees."
David Dayen at The New Republic warns against Donald Trump's approach to infrastructure.