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The populist proposal to benefit working class Americans is being considered again. It will auction off distressed government assets such as loans to pay for infrastructure and other policy priorities. Back in Trump’s first term, two Republicans and a Democrat united to put together the Generating American Income and Infrastructure Act or GAIIN. It fizzled when the Democrats started attacking Trump.
This proposal is among many
Things the Trump administration can do to restore a great America. He’s coming back with a massive mandate that crossed all racial demographics. The members who were originally on board with this have moved up in rank too.
The proposal is being built on as well. The original idea was to sell off the assets and loans of the US Department of Agriculture. The idea is being floated to do this across the whole federal government.
Would bring in a lot of money
Andy Koenig worked on the budget analysis of this in Trump’s first term and found it would bring in over a trillion dollars. It has precedent. Reagan used this same procedure to raise funds in 1986 through the Omnibus Budget Reconciliation Act of 1986.
The federal government is owed $1.9 trillion in loans as well as $87 billion in defaulted loan guarantees. There are over 120 lending programs and more than 15 agencies that administer these loans.
The proposal would sell these to the private sector
It gets them off the government balance sheet and Koenig wrote to that effect.
“One way that policymakers could unwind the government’s massive lending operation is by requiring federal agencies to sell these outstanding loans to willing buyers in the private market. This policy would also provide up to $1 trillion in deficit relief that could be used to cut the deficit and fund White House and Congressional priorities.”
No taxes would need to be raised. The federal government also shouldn’t be involved in lending money. The reason this got traction among Democrats is because it was a benefit to them. Funds raised from selling these assets would fund infrastructure in the most working class districts throughout the nation.
