Trumpwatch 1 Infrastructure

In three months the new CEO gets into the Big sorry White House. How much damage can the incumbent do before he goes? How many regulatory booby traps can he leave? As for the Trump agenda, lets look at the items on his pre-election policy bundle. Starting with Infrastructure. He threatened to outspend Hillary, which is a worry. Comments?

A couple of items.

According to the National Association of Manufacturers (NAM), without major improvements to our transportation systems, “the United States will lose more than 2.5 million jobs by 2025” (NAM, Build To Win, 2016). NAM estimates a “ten-year funding gap” of approximately $1 trillion. The Trump Infrastructure Plan is aimed at achieving a target of investment to fill this gap. NAM also found that $8 billion in infrastructure tax credits would support $226 billion in infrastructure investment over 10 years. Innovative financing programs also provide a 10-to-1 return on investment.

Under the failing Obama-Clinton policies, infrastructure projects across the U.S. are routinely delayed for years and years due to endless studies, layer-upon-layer of red-tape, bureaucracy, and lawsuits—with virtually no end in sight. This increases costs on taxpayers and blocks Americans from obtaining the kind of infrastructure that is needed for them to compete economically.

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41 Responses to Trumpwatch 1 Infrastructure

  1. J.H.

    Abolishing the EPA will go a long way to getting rid of the Green Tape and some of those lawsuits.

  2. Barry Bones

    The state of American infrastructure is absolutely appalling. Verging on third world. Some highways are unchanged since Eisenhower built them. They need the spend. The people want it – let’s stop playing ideologues and get in with it. Gov will spend some, private sector will spend some too.

  3. iampeter

    My comment is that while we should celebrate a serious crook like Hillary losing the White House we should not be celebrating Trump. He has run on a big government, regulatory and welfare state policy platform for the most part. Without too much tweaking his platform shows that the Republicans today have just become the Democrats circa 1950. This is not something to celebrate. There is no mainstream alternative to the Left in politics anywhere in the world at the moment.

  4. egg_

    Abolishing the EPA will go a long way to getting rid of the Green Tape and some of those lawsuits.

    Hasn’t he already picked a new sympathetic head?
    Business would welcome a loosening of red-and-green tape, surely, which should be part of the overall infrastructure mix?

  5. RobK

    To me, there is a big difference between spending on required enabling infrastructure that has a positive nett return and spending with the illusion of stimulus. At first glance they seem mutually reinforcing but like any business you have to be productive first to have any hope of investing in your own future. As I see it, Trump is addressing the issue of productivity by ridding green tape etc, cheaper energy, incentives to return capital and employment back home, lower taxes. In arresting the economic decline, I think he’s got it by the balls. He is a brave smart man and has my deepest respect for the effort he is making.

  6. egg_

    RobK
    #2204911, posted on November 12, 2016 at 8:27 am

    The much needed Gordon Ramsay of US politics?

  7. Rafe Champion

    spending with the illusion of stimulus.
    +1
    My friends in the outback of Arizona have access to broadband courtesy of the Obama stimulus but it is expensive to subscribe and surplus to most people’s needs so the take-up is small.

  8. RobK

    I left off the proposed assault on corruption etc. I think limited terms for politicians and constraints on lobbying are important pursuits to enable the remedies to take effect. All in all it is a mammoth task to turn the ship around. I’m not sure how much can be achieved in a term but I have renewed hope.

  9. The state of American infrastructure is absolutely appalling. Verging on third world. Some highways are unchanged since Eisenhower built them. They need the spend. The people want it – let’s stop playing ideologues and get in with it. Gov will spend some, private sector will spend some too.

    +1

  10. Tel

    Innovative financing programs also provide a 10-to-1 return on investment.

    You can consider my bullshit meter to be triggered.

  11. RobK

    Tel,
    ” Innovative financing programs also provide a 10-to-1 return on investment.

    You can consider my bullshit meter to be triggered.”

    Definitely. These must be concocted opportunity dollars that can never really be measured against what might have been (assumptions).

  12. RobK

    ” a 10-to-1 return”
    A high valuation on intangibles.

  13. Trump’s policy seems to be public-private-partnerships. PPPs are usually a way for the private sector to fleece the public, since they often fail (and sometimes are built to fail) and the public always have to bail out the private investors. So much for blowing up the Establishment!

  14. deplorable goatjam

    For his party monty is making a heroic effort to rejuvenate the rake manufacturing sector. No PPP required!

  15. hzhousewife

    Jobs jobs jobs. People want jobs.

  16. RobK

    ” PPPs are usually a way for the private sector to fleece the public, since they often fail (and sometimes are built to fail) and the public always have to bail out the private investors. So much for blowing up the Establishment!x
    Like any business deal it depends on the terms and conditions. Government is in a powerful position as lawmaker and regulator. I agree it is dangerous and has often caused corruption. The alternative is for government to do it solely. This has often caused greater problems in the same vein and causes drag through increased “taxing”. As with so many things timing and balance are paramount. It’s practically impossible to get it right all the time but a skilled player will do it better than most.

  17. RobK

    ” PPPs are usually a way for the private sector to fleece the public, since they often fail (and sometimes are built to fail) and the public always have to bail out the private investors.”
    Renewable energy is a classic example of this where subsidies and contrived certificates reward an immeasurable derivative such as CO2 abatement.

  18. perturbed

    Trade depends on logistics and infrastructure. The challenge is knowing just how much infrastructure build is necessary to optimise trade logistics. Trump is a businessman – working these things out should be his forte.

  19. egg_

    Trump’s policy seems to be public-private-partnerships.

    MacBank to the fore.

  20. zyconoclast

    spending with the illusion of stimulus.
    +1
    My friends in the outback of Arizona have access to broadband courtesy of the Obama stimulus but it is expensive to subscribe and surplus to most people’s needs so the take-up is small.

    A good thing no one would do something stupid like that here in Australia.
    Oh wait…

  21. Michaelc58

    Yes, Trump should have gone for the “lets eliminate everyone’s benefits, not build any infrastructure and every man for himself” platform. After loosing, he could bask in accolades from Catalaxians for being ideologically pure. /s

    In defense of Trump,
    “Under Budget, Ahead of Schedule”
    “Don’t Let the Perfect Be the Enemy of the Good”

    Anyway, how many impossibles do you want Trump to achieve?
    He saved, against impossible odds, America from the Clinton Dem-RINO cleptocracy and quite possibly from WW3 between the two Christian superpowers, for the benefit of Islam and Asia.
    If Trump achieves nothing more for 4 or 8 years, he has done enough in my book.

  22. Ant

    To the extent a Trump administration spends on infrastructure you can bet billions will be wasted because government!

    On the other hand, you would rather have that administration ‘investing’ in the stuff than any Democrat administration.

  23. BorisG

    He just said that he would like to preserve two pillars of Obamacare because he likes them very much. Watch this space…

  24. egg_

    Turnbull’s FTTN NBN is a far better model than Labor’s FTTH.

  25. NewChum

    He The media just said that he would like to preserve two pillars of Obamacare because he likes them very much. Watch this space…

    Trump said he is keeping his options open.

    From the debates “why are we telling Isis what we are going to do”

    As if Trump is going to telegraph to his enemies what his plans for obamacare are. The plans will be developed behind closed doors and dropped in the public in full. It’s like people haven’t being paying attention for the last eighteen months.

  26. NewChum

    Trade depends on logistics and infrastructure. The challenge is knowing just how much infrastructure build is necessary to optimise trade logistics. Trump is a businessman – working these things out should be his forte.

    Exactly. Infrastructure like dams, power stations, port upgrades and airports are value adding if done properly. Any half decent business graduate can figure out the difference.

    Obamas infrastructure was not. Australia builds school halls, windmills and football stadiums. It’s worse.

  27. egg_

    Turnbull’s FTTN NBN is a far better model than Labor’s FTTH.

    As is preservation of Optus and Telstra’s HFC networks, to do otherwise would be insane.

  28. BorisG

    Trump said he is keeping his options open. As if Trump is going to telegraph to his enemies what his plans for obamacare are.

    Translation form trumpspeak into English: from now on, all Trump’s promises need to be treated as deliberate disinformation designed to confuse and disorient The Enemy.

  29. Translation form trumpspeak into English: from now on, all Trump’s promises need to be treated as deliberate disinformation designed to confuse and disorient The Enemy.

    Ah yes, but who is The Enemy? The Democrats will powerless, they won’t control anything after January. It’s the GOP majorities on the Hill that he has to deal with now.

  30. Snoopy

    NEW YORK—President-elect Donald Trump said he would consider leaving in place certain parts of the Affordable Care Act,

    Yes, the new legislation will include ‘Affordable’ and ‘Act’ in the title.

  31. sdfc

    Trump’s a fan of universal health care. He’s unlikely to can Obamacare and leave nothing in its place.

  32. JC

    Yes, the new legislation will include ‘Affordable’ and ‘Act’ in the title.

    The GOP has always been cagey about repeal and replace. They may be frightened to death in gutting it all.

    If you want to be really cynical about it, they may leave most of it alone – make it national and therefore not be blamed for its failure.

  33. JC

    It’s the GOP majorities on the Hill that he has to deal with now.

    The congressional GOP has a template for a great reform agenda that is likely to be adopted. Dodd Frank looks like its gonsky for a start and replaced with much less regulation and higher capital requirements. Markets love it which is why stocks like Bank of America is up almost 15% since the erection.

    Shut up Monster. You lost. No comments from you for the next 4 years.

  34. sdfc

    If Trump cuts taxes and ramps up spending like he said he’s going to the Fed is going to be raising rates faster than the market it pricing.

  35. JC

    There will be offset, SDFC. But surely the Fed also has to pay attention to its inflation target. It maybe why Trump wants to see the end of Grandma Yellen.

  36. Mon

    Gillard would have a few clues about setting booby traps.

  37. sdfc

    The Fed never stopped paying attention to its inflation target.

  38. JC

    The Fed never stopped paying attention to its inflation target.

    Which is why it’s hasn’t hit the target in about 12 years?

  39. sdfc

    A massive financial crisis and globalisation will do that for you JC. In case you haven’t noticed the Fed has quadrupled its balance sheet and still has a feds funds rate under 0.5%.

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