Wednesday, November 23, 2016
Economy: Infrastructure - What America Could Learn From Europe
I think Yellen` s concerns could be avoided if the US government follows the European role model. The "old continent" has been privatizing a lot of state owned enterprises:
Airports: The airports of Frankfurt (Fraport) & Vienna (Wien) are traded on stock markets, London` Heathrow belongs to a private consortium.
Harbors: You also get can get stocks of the harbor of Hamburg (Hamburger Hafen AG) which is traded on Frankfurt Stock Exchange and other German stock exchanges.
Streets: According to wikipedia "of the 11,000 kilometers of France's highways, 8,000 km are under private concession. 3,120 kilometers of Italy's highways (comprising 56% of the country's toll roads) are controlled by Autostrade Concessioni e Costruzioni Autostrade " (wikipedia)
Railways: Great Britain privatized her railways (independent) and her water system (supply & disposal).
The bankrupt Greece even is going further and is revitalizing herself by privatizing hotels, spas, camping areas, ministry buildings, national roads, forty airports, military installations, natural gas , the defense industry, the water supply and thousands of hectares of land, wetlands, railways.
The proceeds could be used to invest into the infrastructure (streets, railways) which is in a lamentable condition and to expand & to modernize it. Private airports, harbors, railways and other institutions are less bureaucratic and more efficient, flexible, customer friendly & cost effective then public controlled. So privatization and a better infrastructure could lift the American productivity and foster growth. This also would create more jobs & revenues in the infrastructure industry like Caterpillar (construction machines) or Fluor (engineering ) and could so soothe complaints about "a shrinking industrial base".