Thursday, February 22, 2018

Marshall Auerback — Trump’s Bogus Infrastructure Plan Takes the U.S. Further Down the Road of Rentier Capitalism

President Trump presented his infrastructure plan last week. If you’re keen on the idea of out-of-control privatized utilities gouging customers and manipulating energy markets, or consortia building overpriced, expensive toll roads (until they go bust), then you’ll love the president’s proposals. His mooted public-private partnerships are another variant of socialism for the rich and free market discipline for the rest of us. PPPs are like a religion that offers its adherents the promise of capitalist heaven via tax breaks, subsidized funding, and guaranteed returns, minus the discipline of private bank credit arrangements or potential bankruptcy, the costs of which are invariably borne by a public already experiencing the hell of significantly more restricted access (think toll roads and bridges), higher user fees or “slower lane” traffic (think the end of net neutrality), and the costs of bailouts if and when the venture goes bust....
No private market discipline is enforced on management because in most cases they are given control of what was once a public monopoly, which is simply converted into a private one. It’s rentier capitalism, plain and simple.... 
In essence, these public-private partnerships are one of the sick jokes that the neoliberal era visited on all of us in the name of economic efficiency and responsible government—a ‘joke’ because the beneficiaries of all this public largesse have been laughing all the way to the bank as stupid public officials continue to fall prey to their lobbying as they joyfully hand over the keys to the public purse. Trump is simply perpetuating the trend of allowing governments to continue to abrogate their true responsibilities to pursue and safeguard public purpose. Governments should never have become agents of private profit.…
Neoliberalism can be viewed as government as agent of private profit based on "free market" ideology that prioritizes private ownership over public because "efficiency," along with public policy that favors capital formation as the basis for growth, under the assumption that "a rising tide lifts all boats" (trickle down).

Naked Capitalism
Trump’s Bogus Infrastructure Plan Takes the U.S. Further Down the Road of Rentier Capitalism
Marshall Auerback
Cross-posted from Alternet

8 comments:

Matt Franko said...

Again the left here puts a ZERO value on organization and management skills...

Matt Franko said...

“Baltimore's port was the most productive port in the nation for the third straight time in 2015, according to an independent analysis by the Journal of Commerce.

The 11 cranes at the Seagirt Marine Terminal, the port's primary container facility, are operated by Ports America Chesapeake under a $1.3 billion public-private partnership deal.”

https://www.google.com/amp/www.baltimoresun.com/business/bs-bz-port-efficiency-award-20161213-story,amp.html

Matt Franko said...
This comment has been removed by the author.
Tom Hickey said...

There is qualitative analysis based on qualitative methodology and quantitative analysis based on quantitative methodology.

As in the difference between quantitive and qualitative analysis in chemistry.

There is a huge body of literature on the comparison and contrast of qualitative and quantitative.

BTW, I am taking a long weekend so posting and comments will be light and intermittent.

Matt Franko said...

The quality of the PPP infrastructure is always better than otherwise in my area...

This is because under PPP agreements the revenues have to be spent on maintenance and can’t be diverted into general revenues to use for unrelated purposes....

Look at Oroville Dam... all the $$$ for maintenance diverted into providing Social Services for illegals and next thing you know 200,000 people have to be evacuated and 100s of $M spent just because they didn’t maintain a few concrete expansion joints in the main spillway...

Matt Franko said...

Caltrans Bay Bridge fiasco:

https://www.sfgate.com/opinion/editorials/article/Caltrans-Bay-Bridge-fiasco-2661386.php

Matt Franko said...

Bridgegate:

https://www.nbcnews.com/storyline/christie-bridge-scandal/bridgegate-scandal-ex-christie-allies-bill-baroni-bridget-kelly-get-n739941

Matt Franko said...

The Big Dig:

https://en.m.wikipedia.org/wiki/Big_Dig