HomeBudget & Tax NewsFederal ‘Infrastructure’ Money Is Really for Wasteful State and Local Governments, Crony...

Federal ‘Infrastructure’ Money Is Really for Wasteful State and Local Governments, Crony Bailouts, and Slush Funds

By Seton Motley

To paraphrase George Santayana:

“Those who cannot remember the past are condemned to look like idiots supporting politicians who are repeating it.”

We immediately warned of a few things when Washington yet again began pretending their “infrastructure” bill had anything to do with actual infrastructure.

We warned that government has time and again wasted HUGE coin in alleged attempts to “stimulate” economies, “create” jobs and “build” infrastructure.  Including rather recently.

Barack Obama Admitted $787 Billion Stimulus Was Utter Failure, ‘There Were No Shovel Ready Jobs’

We warned that all of the Democrats’ alleged effort to pass this infrastructure bill with Republican support is a lie.  It is Bipartisan Legislative Theatre.

President Joe Biden and his cohorts all along have planned to ram it through unilaterally via reconciliation.  Because they want to spend as much money as possible.  Because they want to use it to fundamentally transform America.  And Republicans are an impediment to that.

Democrats’ Cynical Ploy: Everything Is ‘Infrastructure’

Biden Inc.’s ‘Infrastructure’: ‘White House Moves to Reshape Role of US Capitalism’

Senate Democrats Eyeing Roughly $6 Trillion Reconciliation Package on Infrastructure, Healthcare and Climate Change

Watch what ends up passing – and how it’s passed….

We warned that a mere 5% of US infrastructure – roads, bridges, tunnels, etc – actually belongs to the federal government:

“The private sector owns 65% of it, including power stations, freight railways, pipelines, factories, broadband networks, and much else. State and local governments own 30%, including highways, schools, and airports. The federal government owns just 5%, including dams, postal facilities, and other assets.”

Which means a mere 5% of US infrastructure is the federal government’s responsibility.  Which means the trillions they are looking to spend?  Are for bail outs and slush funds – for state and local governments and private sector cronies.

The whole reason we have the government privatize things – is because the private sector does things better than government.  Private companies are supposed to build the price to maintain and expand their infrastructure into the price they charge for their goods and services.

If these companies have not done so – or if they have and are now lyingly crying “poverty” to get government money – the government have made VERY poor outsource choices.  Which means the government probably chose them for crony rather than capability reasons.  And the federal government is about to reward all of these failings – by handing these cronies hundreds of billions of dollars more.

We have for many decades paid loads and LOADS of state and local government taxes.  So that infrastructure should already be VERY well maintained.  That it is not – is reason to criticize state and local governments.  Not reward them with hundreds of billions more of our money – handed to them by the federal government.

But that’s exactly where the Democrats are headed.  Unilaterally jamming through trillions of dollars for cronyism – not infrastructure, jobs or stimulus.

Only 5% of $2 Trillion ‘Infrastructure’ Bill Funds Roads and Bridges

Speaking of state and local government bail outs and slush funds….

Democrats Raring to Go on Broadband Legislation:

“That measure would provide more than $90 billion….”

Government Is Lying About What Broadband Is and What We Need From It:

“(W)e have tried government-run ISPs since basically the inception of the Internet – and government is awful at it.  More than 450 attempts at government-run Internet service – nigh all abysmal failures.”

And since all of this new federal government money will go into state and local government bank accounts already stuffed-to-overflowing with our money – things get fungible and funky quite quickly.

And, of course, even more expensive for We the Taxpayers.

New Study Finds Electricity Rates Rise When Cities Shift Costs of Government Broadband Networks to a Municipal Electric Utility:

“‘Municipal broadband systems typically require subsidies from city finances,’ says study author and Phoenix Center Chief Economist Dr. George S. Ford.

“‘When a broadband network is attached to a municipal electric utility, the data show electricity rates rise to cover the costs. Cities contemplating a utility-funded municipal broadband system should consider the effects on electricity rates on their constituents.’”

Governments have tried being broadband companies over 450 times.  And they have failed – over 450 times.  And when they fail – they hide and subsidize their fail by charging us even more for other government stuff.

Oh: Is this the first time the federal government has handed state and local governments billions of our dollars to fail at broadband?  Heavens no.

Obama Stimulus Bill Includes $7.2 Billion for Broadband

Undaunted by all of this history, the federal government is now going to give a hundred billion of our dollars to state and local governments.  To have state and local governments yet again fail at pretending to be broadband companies.  And then yet again charge us even more for other government stuff to hide their fail.

The only thing shovel-ready?  The Democrats’ effort to bury the nation in debt.

Originally published by Less Government. Republished with permission.

Seton Motley
Seton Motley is the president of Less Government, a DC-based non-profit organization dedicated to reducing the power of government and protecting the First Amendment from governmental assault.

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