The indefatigable Paul Krugman takes a closer look at Trump's proposed infrastructure funding plans in his column for The New York Times, wondering why the President-elect would seek private equity for public projects. Is this a profiteering scheme that sneakily privatizes ownership of traditionally publicly accessible resources (like water, for example)?
As Krugman notes about Trump's plan: "Crucially, it’s not a plan to borrow $1 trillion and spend it on much-needed projects — which would be the straightforward, obvious thing to do. It is, instead, supposed to involve having private investors do the work both of raising money and building the projects — with the aid of a huge tax credit that gives them back 82% of the equity they put in. To compensate for the small sliver of additional equity and the interest on their borrowing, the private investors then have to somehow make profits on the assets they end up owning."