Ever since ASCE began issuing its “National Infrastructure Report Card” in 1998, the nation has gotten a dismal grade of D or D+. In the meantime, the estimated cost of fixing its infrastructure has gone up from $1.3 trillion to $4.6 trillion.
While American politicians debate endlessly over how to finance the needed fixes and which ones to implement, the Chinese have managed to fund massive infrastructure projects all across their country, including 12,000 miles of high-speed rail built just in the last decade...
A key difference between China and the US is that the Chinese government owns the majority of its banks... The US government could do that too, without raising taxes, slashing services, cutting pensions, or privatizing industries.... The federal government could set up a bank on a similar model. It has massive revenues, which it could leverage into credit for its own purposes. Since financing is typically about 50 percent of the cost of infrastructure, the government could cut infrastructure costs in half by borrowing from its own bank. Public-private partnerships are a good deal for investors but a bad deal for the public. The federal government can generate its own credit without private financial middlemen. That is how China does it, and we can to.
Ellen Brown: If China Can Fund Infrastructure With Its Own Credit, So Can We https://www.counterpunch.org/2017/05/18/if-china-can-fund-infrastructure-with-its-own-credit-so-can-we/, CounterPunch (18 May 2017)
