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The NY Times wonders if more cities will allow public infrastructure to be privately financed. Investment banks have "an estimated $250 billion war chest" as the U.S.'s infrastructure crumbles. Mayor Bloomberg has touted the need for more federal funding ("we have an infrastructure crisis"). While the banks tells the Times, “Ten to 20 years from now infrastructure could be larger than real estate,” one big question is whether they'll get the returns they want. Still, there could be an upside for the public: A Northeastern University professor told Reuters earlier this month, "Elected officials often shortchange funding of maintenance because they don't want to increase user fees or taxes to pay for it. Their election cycle is four years. They can pass it on to someone else's watch."
Is There a Future for Privatizing the City's Infrastructure?
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Does any other country in the world rely on private funds to fund public infrastructure?
There are places in THIS country where private entities finance public infrastructure. It's also more common in Europe if I'm not mistaken.
The NY subway system was created by private companies. The Second Avenue subway line is a testament to the efficiency of the public sector!
Japan has been doing it for decades. We're so fucking behind due to lazy fucks and corruption.
I have a bridge to sell you, it connects brooklyn to manhattan. All you have to do stand on one side and collect tolls from everyone that crosses.
No. There isn't a future for privatization of infrastructure. Because private companies need to make a profit. If the operation isn't profitable they will want to get out. You would also want to to keep foreign companies from getting involved.
I can't even believe this is even being discussed. How much money has the US wasted on the war?
How exactly do private entities profit from owning infrastructure? For example, if someone bought the Brooklyn Bridge what would be the gain? Are we just going to end up paying tolls for the use of everything eventually?
"Initially, Roebling was met with cool reception by the city governments of New York and Brooklyn. He then approached William C. Kingsley, a Brooklyn businessman with political connections and publisher of the influential Brooklyn Eagle, who met the idea with enthusiasm. In turn, Kingsley enlisted the support of Henry Murphy, a state senator and former mayor of Brooklyn. Murphy then drafted a bill to the New York State Legislature that would enable a private company to build a bridge connecting Manhattan and Brooklyn.
In 1867, a group of prominent leaders formed the New York Bridge Company "for the purpose of constructing and maintaining a bridge across the East River." Under the enabling act, the city of Brooklyn (which stood to benefit the most from the bridge) subscribed for $3 million of the capital stock, while the city of New York only subscribed for $1.5 million. The company was permitted to fix toll rates for pedestrians and all types of vehicles, receiving a profit of no more than 15 percent per year."