Posted on 06/26/2017 11:14:16 AM PDT by Tolerance Sucks Rocks
LONDON — The rest of the planet bears a warning for President Trump’s plan to lean heavily on private business in conjuring a trillion dollars’ worth of American infrastructure: Handing profit-making companies responsibility for public works can produce trouble.
In India, politically connected firms have captured contracts on the strength of relationships with officialdom, yielding defective engineering at bloated prices. When Britain handed control to private companies to upgrade London’s subway system more than a decade ago, the result was substandard, budget-busting work, prompting the government to step back in. Canada has suffered a string of excessive costs on public projects funneled through the private sector, like a landmark bridge in Vancouver and hospitals in Ontario.
By contrast, China has engineered one of the most effective economic transformations in modern history in part through relentless investment in infrastructure, traditionally financed and overseen by an unabashedly powerful state. China illustrates both the benefits and perils of state domination. It has constructed projects strategically, as part of a highly successful effort to catalyze economic growth. Yet the state has wielded authoritarian powers, generating waste and corruption.
The Trump plan was heralded as a way to lift America’s sagging infrastructure while spurring growth. But it risks yielding India-like problems while failing to produce China’s economic benefits.
Many economists warn of a classic mismatch of incentives. Governments may have good reason to invest in projects that yield no profit, building roads to nowhere that ultimately open up undeveloped land for job-generating commerce. Government alone has the incentive to upgrade shoddy wastewater treatment and supply systems for drinking water. Absent public guarantees for profits, private companies have no inducement to bring such works into creation.
(Excerpt) Read more at nytimes.com ...
What a joke. Trump must tell them to mind their own business.
They have yuge problems of their own making to solve.
The rest of the planet can suck on it.
Hmmm. The slimes are off of Russia collusion and attempting a critique of Trump’s agenda. Winning!!
Meaning, we are the nytimes. Only bloated socialist spending is approved.
Apparently, we should be more like China.
Golly, I’m surprised the NYT think China is better than America. /s
and then there was the New SF Bay Bridge whose component parts were built in China that are now a huge problem because of the super low quality (below legal specs but installed anyway)is jeopardizing the life expectancy of the bridge. The tax payers got screwed and the crooked politicians made bank on the deal with secret kickbacks from the mafia controlled unionized contractors. That den of thieves and snakes are laughing all the way to bank.
Too funny! A company (NYT) that has never built anything except a bad reputation telling a builder how to conduct business.
“In India, politically connected firms have captured contracts on the strength of relationships with officialdom”
You mean like Tesla?
Note to world...ESAD.
I opposed government infrastructure stimulus when 0bama, Clinton and Bush tried to get it passed. I oppose it now.
Change laws if needed to stimulate, but stop throwing tax dollars to infrastructure.
Dear World,
Eff You.
The USA
Yes, this article did seem admiring of China.
Union bailout.. a Trillion dollars. But will we have fancy signs posted so we feel good about another bailout?
I agree the government shouldn’t generally spend (stolen) tax dollars on infrastructure. There may be exceptions where national security is a consideration. Certainly, this business of spending a trillion of taxpayer $ on infrastructure to create jobs, stimulate the economy is Keynesian BS.
However, some of what Trump is proposing for the infrastructure is finding ways of privatizing, i.e lease or sell highways, bridges, etc, to private companies and let them charge tolls in exchange for renovating and maintaining them. This is the kind of approach “the world” is warning Trump against.
I would support that in a heartbeat - except perhaps in a few cases where national security interests would prohibit.
I think “the world’s” warnings of poor quality, schedule delays and budget overruns are exactly backwards: it is the government that is known for poor quality, schedule delays and budget overruns.
What do you think?
The NYT had the same concerns about the NObama infrastructure plan? Oh, now I remember. NObama just put the money directly in his donor’s pockets and did not pretend to build anything.
“yielding defective engineering at bloated prices...”
Like the Boston Big Dig???
Sure. Getting rid of environmental impacts, minimum wage laws, union requirements and other regulations would improve investments and ROI.
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