U.S.’ Infrastructure plan needs P3s for airports to make a difference

Successive U.S governments have been unveiling stimulus packages and infrastructure plans since the emergence of the coronavirus pandemic, and those now total more than USD6 trillion.

The airport sector has been a recipient, but of only USD33 billion in 2021, including from the latest proposal, which is still to be ratified. That sector says it needs US115 billion now.

It is clearly not a priority for this administration but surprisingly has been, at least comparatively, under the previous one.

The private sector could help fill the gap and the interest is there. But further changes are needed to regulation to enable that sector to play its part fully.

Summary:

• US President Joe Biden’s An ‘Infrastructure Bill’ will spend USD2.25 trillion.
• It comes on top of two COVID stimulus packages in 2020 and 2021, which amounted to USD4 trillion, of which USD1 trillion remains unspent.
• Critics say that less than half will go to ‘infrastructure’.
• With the deficit soon to exceed USD30 trillion, the printing of money appears to be de rigueur in the US and especially under this administration, which is not yet three months old. New monetary theory, to which it aspires, has it that that is okay, but only if there is the production to match the money, otherwise inflation will result.
• The very low contribution to the airports sector means there will be little production there.
• So the onus may fall on the private sector, which was encouraged by the previous administration.
• But to maximise that sector’s potential the taxation schedule on investment bonds must be revised.