Robert Reich has commented on the MarketWatch article Saudi Arabia’s $20 Billion wager with Blackstone is record-sized bet on U.S. infrastructure.
Saudi Arabia just joined the parade of investors into U.S. public works by pledging a record $20 billion investment with Blackstone Group’s new infrastructure fund.
It’s the latest push around the world by large investors to buy up U.S. airports, roads, bridges, water systems, and other public projects.
Rather than taxing the wealthy and then using the money to fix our dangerously outdated infrastructure, the states and the federal government increasingly are giving rich investors tax credits to encourage them to do it.
The investors then charge tolls and user fees, and earn big profits.
I was wondering when we would find out why on earth a foreign country would want to invest in our infrastructure. I suspected we might be paying tolls to Saudi Arabia to use highways in our own country. What could possibly go wrong with that idea?