I am a fan of government investment in infrastructure when it is clear that an economy is in the doldrums. The UK still needs it. But the US? Not so obviously.
Why? Jobs are doing OK there. Inflation is rising. Growth is looking alright. Pressure on interest rates is rising as a result. Some parts of the economy - the stock markets - are already over heating.
But Trump , like a typical Republucan, wants to spend like there is no tomorrow and print money to pay for it as tax cuts are also promised. The timing is not good. But that would not rule out infrastructure spending if the economic eeturm justified it.
Investing in the US's crumbling bridges would make sense, for example. They scare me every time I visit. I am sure others closer to the scene than me can prepare a long list.
But Trunp's going to build a wall: a wall that is not needed and a wall that may not work. It's a wall with a negative rate of return because it will have a big cost to run.
Economically there's a description for that. It's the wrong infrastructure, in the wrong place, at the wrong time. It's like those Spanish airports that never saw a plane: it's infrastructure gone mad. And no one should be building their hopes for a US boom on such spending. But US stock markets are. This is a collective leave taking of common economic sense. And that's not a good sign for anyone.
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I agree.
In my opinion what we need is a CIVIC infrastructure that helps match a community’s underused resources with its unmet needs – i.e. a zero waste/circular economy.
Such an infrastructure would deliver backbone support to community organisations and SMEs.
Its job? To build community, unlock stored value and generate recurring revenues.
Honestly, this is on its way, from right here in Manchester.
BTW, I’ve been checking out the Fair Tax Mark, the Ethical Consumer etc etc and it seems that Ed Mayo (or maybe it’s you) is the ‘hidden hand’ behind it all.
🙂
I’m not sure that Trump is necessarily looking for government investment in infrastructure – Michael Hudson has a different (and deeply depressing)take on it.
http://www.counterpunch.org/2017/01/24/developer-welfare-trumps-infrastructure-plan/
But the Mexicans are going to pay for that wall !
There was a wonderful interview on PM yesterday with Alex Wineburg a US engineer. He debunked the grandiose notion of the wall more effectively than the most brilliant satirist could. (http://www.bbc.co.uk/programmes/b0890kjj at around 42 minutes). He gave various logistical reasons (e.g. the Rio Grande river, the presence of Native American settlements) why the project would be infinitely more complicated than Trump implies. On the subject of job creation, he pointed out that building a pyramid would create jobs but the best way to do so would be to create something useful. His request was for a high-speed rail network which the USA currently lacks. He thought that Trump might achieve some ‘Potemkin walls’ here and there.
Yes, those bridges will be really creaking with the sheer volume and weight of all those stones, bricks, sand, cement, steel and water required to be transported to build a 40 metre high wall for a 2,000 mile wall along the Mexican border. I am no civil engineer but can see this is a completely crazy project whose only purpose is enhancing the ego of Donald Trump.
Some sources say Trump is indeed going to be investing in infrastructure but he’ll be putting taxpayers in debt for it and as well as charging them interest on the money involved his corporate buddies will be charging them to use it after. He’s creating a rentier class. But isn’t that what capitalism is all about, isn’t the whole point of it exploitation? What else would anyone expect?
I have also heard that they are going to build an oil pipeline now through some of the last remaining native Indian territory.
So, the Statue of Liberty becomes the Statue of Bigotry in one fell swoop.
As for the wall (and I’m sorry to be prosaic here) but how long will it be before the US starts to see dead Mexicans washed ashore its beaches or inundated, overcrowded liferafts turning up off its coastline? Honestly……….
The pace at which Trump is working though betrays to me that he does not expect to last more than one term – it smacks of smash and grab really.
You can get pretty good odds on him not lasting a term….
4 to 1 I think
Trump is mentally ill. That’s really all there is to it. The corrupt GOP will give him bills to sign and impeach him if he gives them any trouble. The wall is bagatelle compared to what they will help themselves to. And meanwhile, it seems growing numbers are buying property in NZ in case the the peasantry stage a revolt. Peter Thiel has even taken out citizenship.
I am not sure he is ill
I do think he is deluded
TRUMP =
Totally
Rogue
Uneducated
Male
President