Update on States Selling-off Public Assets (Roads, Airports, Water Treatment Plants, etc.)

In an earlier post we highlighted a growing practice whereby state governments with a wink and a nod from the Feds are signing away the operation of infrastructure to private for-profit companies.

Why?

For a short-term cash infusion and to reduce the state government overhead for maintaining and running the infrastructure.

But then politicians can selectively use facts or conveniently ignore longterm ramifications in order make projects seem more appealing. Sometimes, amazingly, even pointing out the benefits of a public-private partnership while criticizing their own previous short-comings. Its acceptable to have been wrong in the past as long as it helps validate that they are right in the present. Even if the overall premise falls apart:

Mineta, who served as [San Jose] mayor from 1971 to 1974, said he and other mayors across the country made mistakes in deciding where to site highways in their cities. Instead of combatting congestion and urban sprawl, he said, their decisions fed both.

"We created our own congestion. I intended to relieve congestion, but only added to congestion. Now as secretary of transportation, I am trying to undo that congestion. I have come full circle," said Mineta, who said he regrets Santa Clara County's decision four decades ago not to join BART. The idea of extending BART to San Jose is still being debated.

So Mineta admits that poor decisions in the 1970s led to urban sprawl, traffic congestions and a lack of foresight in extending the public transportation system (BART). But is his focus on getting public transportation right and extending BART or in improving urban planning to reduce urban sprawl and reduce energy use?NO - his "coming full circle" is the process of getting to the point of selling off public assets to private companies to continue to build more roads??? It didn't work 20 years ago, what has come full circle other than money changing hands?

Then you have the view from the private sector:

Investment banker Carol Rein of UBS Securities says foreign investors like government assets in this country because similar investment opportunities in Europe and Australia have been successful. Assets such as toll roads and water systems are attractive to investors because they have little competition and generate steady revenue.

And there you have the problem no one will readily discuss - turning over "must-have" public service infrastructure that should be operated for the good of the people to private companies who effectively own a monopoly on the roads you must travel, the water you drink, and the transportation systems that are needed every day.

In the future, your children will curse you for letting this stuff go by right under your nose.