Posted 2 weeks ago on April 7, 2018, 10:13 a.m. EST by agkaiser
from Fredericksburg, TX
This content is user submitted and not an official statement
An interview of Michael Hudson by Laura Flanders
Laura Flanders: The infrastructure plan. It’s a shady scheme to privatize, that bit of infrastructure we have left.
Michael Hudson: I knew that it was going to be privatized, but nobody could have realized it would have been quite as awful as it is. When people think of infrastructure, you think of how America got rich. It got rich in the 19th century and early 20th century by making free roads, by really providing all of the costs that are the structure of the economy, so roads and stores and railroads.
Laura Flanders: Free to us, free to the corporations, but at some cost to the people.
Michael Hudson: Right, well, the whole idea was to provide these at either no cost, like roads, or at a subsidized price. The whole idea that was taught in business schools in the 19th century was American can out compete other countries by lower[ing] the cost of doing business, lowering the cost of living, by providing free schooling, free roads, free, they didn’t use the word infrastructure, but free of all of the things that were monopolized in the medieval period.
What Trump has done is all of a sudden, instead of using infrastructure spending to make America the low cost economy, which is how we got rich enough to compete with England and Europe and undersell other countries, this plan is designed to make America so high cost economy that it actually ends any hope America had of ever exporting manufacturers or the things that Trump said that he was going to do.
Laura Flanders: What’s in it for him and his constituents?
Michael Hudson: What we call economic rent seeking, a free lunch, a give-away to the financial sector. The Trump model is the Indiana Toll Road or the Chicago parking meters that we talked about last time.
Laura Flanders: Privatized.
Michael Hudson: Yes, the private capital is going to come in and demand such a high rate of return that nobody really can use the Indiana Toll Road. Most people use the side roads that are free that take longer. ...