May 15

Written by: Jim Hansen
Tuesday, May 15, 2007

I'm always amused when elected officials - who often vote for huge tax cuts and allow the federal deficit to reach new heights - like to be around when public funds are being dispensed. Yesterday, our state governor flew around Idaho to preseent federal grant checks totalling $6.1 million to 16 local governments. Thanks Betsy Russel for putting this in your Eye on Boise blog yesterday.

I like the idea that public officials associate themselves with the investment of public money (tax money) into public infrastructure (even if they didn't have much if anything to do with the communtity actually getting the grant). I spoke with folks in Salmon this morning and that was one of the cities Gov. Otter visted yesterday to "present" receiving their federal grant.

In additiona to basking in the value of the investment, these public officials have a moral obligation to point out three critical things:

• that investment in this kind of infrastructure is LESS than what our parents and grandparents generation invested,
• that tax policies favoring wealthy private interests have undermined our capacity to provide public investment and
• that some states are being forced to actually SELL to wealthy private interests the very public investments we paid for.

In the 1950's, 60's and 70's there was substantial public investment in things that made economic growth in our communities - especially small communities - possible: sewer systems, hospitals, fire stations, airports, reclamation projects, etc... This kind of invesment is as American as the apple pie. It also tends to benefit everyone rather than just a few wealthy power brokers. It was paid for by tax dollars and the more you benefited by American capitalism, the more you were expected to invest through tax dollars in the infrastructure that benefited everyone.

Formerly, our government expected wealthy corporations and individuals to be partners in building communities. Today, our government is finding ways to help wealthy corporations and individuals build bigger fortunes. One way is by selling them our community infrastructure.

Business Week reported last week that Wall Street bankers and investment firms are rushing to raise cash to buy out public assets. It reports that when Goldman Sachs estimated it needed $3 milllion to capitalize its new infrastructure fund, private interests rushed in with $6.5 million. What are they investing in? Public infrastructure we have already paid for with tax money. Pennsylvania is preparing to privatize its famous Turnpike. Indiana already has. The Business Week story provides some sobering examples such as the pending long-term lease of the Colorado Northwest Parkway - paid for with massive public investment - to a group of Portugese and Brazilian investors.

Sam Pizzigati writing for a great on-line weekly called Too Much: A Commentary on Excess and Inequality picked up on the story and notes that: "governors and lawmakers, unwilling to tax the rich to maintain America's roads, are now taking bids to sell these roads to the rich."

I have noticed that in Idaho, since the decline of public investment in things like roads, schools, clinics and sewer systems, it is amazing how small communities hang on. It probably comes as no surprise for them to see state and federal governments turning to private investors - most of whom probably have never set foot in our communities - to buy out the infrastucure we've already paid for.

Who is government serving?

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