So. Donald Trump’s $1.5 trillion infrastructure plan. As near as I can tell, here’s the skinny:
- It’s really more like a $1 trillion plan.
- States are expected to put up $800 billion.
- The federal government will put up $200 billion.
- But the money will be taken from other projects.
In other words:
- Net new spending from the federal government will be zero.
- The incentives to states will be far too small to prompt any truly new development—though I have no doubt that states will compete ferociously to get federal money for projects they were going to do anyway.
- The private sector will get involved only if they can make money via tolls, use fees, etc. That is to say, taxes.
In yet other words:
- There is nothing there. There will be no new publicly-funded infrastructure.
Would anybody care to tell me if I’m missing anything here?