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00:00THE ECONOMY. AND WE ARE COMMITTED TO DRIVE THE ECONOMY. >> WE WERE TALKING ABOUT INFRASTRUCTURE BACKSTAGE. I WAS MAKING A JOKE THIS MORNING, EVERY TIME I GO TO NEW YORK, IT'S A HARROWING EXPERIENCE. TELL ME ABOUT YOUR PLANS FOR INFRASTRUCTURE AND HOW ARE YOU GOING TO DIVIDE BETWEEN TAX CREDITS VERSUS DIRECT APPROPRIATIONS SPENDING? >> WE TALKED A LOT ABOUT INFRASTRUCTURE. OUR CORE BASIC PLANS WHEN WE STARTED, WE TALKED ABOUT HEALTH CARE, TAXES, INFRASTRUCTURE IN THAT ORDER. PART OF OUR TAX PLAN MAY BE TO USE SOME OF THE REPATRIATED MONEY INTO AN INFRASTRUCTURE FUND OR INFRASTRUCTURE BILL. SO WE KNOW THAT WE ARE GOING TO FUND SOME OF THE INFRASTRUCTURE. DIRECTOR MULVEY AND HE WILL TELL YOU HIS BUDGET, HE HAS FAIRLY SUBSTANTIAL ALLEGATIONS IN FOR INFRASTRUCTURE. THE GOVERNMENT WILL HAVE TO BE INVOLVED IN THE INFRASTRUCTURE. THAT SAID, WE THINK BRINGING PRIVATE CAPITAL IN A LONG SIDE WITH THE GOVERNMENT, OR EVEN PRIVATIZING INFRASTRUCTURE, MAKES AN ENORMOUS AMOUNT OF SENSE. BUILDING UP THE GOVERNMENT PLUS BALANCE SHEET FOR THE SAKE OF BUILDING UP THE GOVERNMENT'S BALANCE SHEET DOESN'T MAKE THE MOST SENSE. IF WE HAVE EXISTING INFRASTRUCTURE THAT HAS DIRECT REVENUES ATTACHED TO IT, WE THINK THERE MAY BE VERY IN IDEAS IN THE FOR-PROFIT OR NOT-FOR-PROFIT WORLD, TO TAKE THAT INFRASTRUCTURE AND PUT IT INTO CORPORATIONS AND USE MORE OF THE CAPITAL MARKETS TO PAY FOR THAT INSTEAD OF PUTTING IT ON THE GOVERNMENT'S BALANCE SHEET. WE KNOW IT WILL CREATE LONG-TERM, BETTER MANAGEMENT. IT WILL CREATE A MAINTENANCE PROGRAM BRADY WILL DO THE THINGS WE NEED TO DO FOR AN EFFICIENT LONG-TERM INFRASTRUCTURE MANAGEMENT PROGRAM. WE DO NOT WANT TO SIT HERE AS THE FEDERAL GOVERNMENT AND BE A PIGGY BANK DOLING OUT MONEY HERE, THERE, AND SOMEWHERE ELSE. WE WANT TO BE A PARTNER. WITH MAYORS, MUNICIPALITIES TO COVER THEM AND KILL INVEST ALONG WITH THEM ON PROJECTS THAT THEY WANT TO PUT CAPITAL. >> -- >> AS MOST OF YOU KNOW, THERE'S A HUGE STATE AND LOCAL. THE FEDERAL GOVERNMENT OWNS VERY LITTLE INFRASTRUCTURE. WE CONTROL ALMOST ALL OF THE INFRASTRUCTURE. WE CONTROL ALMOST ALL THE PERMITTING PROCESS. >> HOW DO YOU ENSURE IT IS SPENT IN THE RIGHT PLACE? HAL ROGERS IS FROM SOUTHWESTERN, SOUTHERN KENTUCKY. MOST BEAUTIFUL HIGHWAYS IN THE WORLD. UNFORTUNATELY THERE ARE NO PEOPLE. HOW DO YOU ENSURE YOU ARE NOT BUILDING BRIDGES TO NOWHERE, YOU ARE ACTUALLY PUTTING ASPHALT AND BRIDGES WITH A POPULATION IS? >> THAT'S WHAT I WAS ALLUDING TO. WE DON'T WANT TO BE IN THE BUSINESS OF JUST DOLING OUT MONEY. WE WANT TO BE IN THE BUSINESS OF INVESTING IN INFRASTRUCTURE OR OTHER PEOPLE, THE STATES, MUNICIPALITIES, AUTHORITIES ARE GOING TO PUT THEIR MONEY WITH US. KNOWING THEY WILL NEED TO GET A RETURN ON THEIR INVESTMENT, THEY WILL NEED TO GET A RETURN ON THEIR CAPITAL. HOPEFULLY WOULD MAKE SENSE TO BRING IN OTHER PARTNERS, BECAUSE WE DON'T WANT TO BUILD A BRIDGE TO NOWHERE TO SAY WE BUILT IT IN AN APPROPRIATION. WE WANT TO BUILD A SMART INFRASTRUCTURE WHERE WE ARE GOING TO CHANGE PEOPLE'S LIVES, WHERE WE ARE GOING TO MAKE IT INTO WORK EASIER, GETTING TO SCHOOL EASIER, FLYING ACROSS THE COUNTRY EASIER. >> THIS PRIVATIZATION INCLUDE THE AIR TRAFFIC CONTROL SYSTEM? >> WE HAVE A LIST. IT'S NOT A COMPLETE LIST. I HAVE TALKED FAIRLY OPENLY ABOUT THE SYSTEM. THE ATC SYSTEM IS SORT OF A BELLWETHER EXAMPLE OF SOMETHING THAT CAN BE DONE AND SHOULD BE DONE. WE'RE NOT ON LEADING EDGE TO DO THIS. WE ARE FOLLOWING WHAT A BUNCH OF OTHER COUNTRIES HAVE DONE. OVER 50 COUNTRIES HAVE DONE WHAT I'M PROPOSING WE DO. THERE'S A DIRECT ATTRIBUTABLE REVENUE STREAM ALREADY, DEDICATED TO AIR TRAFFIC CONTROLLER. IF YOU PUT THE ATC COMPONENTS INTO A PRIVATE BUSINESS, WHETHER FOR PROFIT OR NOT-FOR-PROFIT, BUILD THE TECHNOLOGY, MODERNIZE THE SYSTEM, THE REVENUE IS THERE, THE TECHNOLOGY IS THERE, THE OPPORTUNITY IS THERE, AND IT WILL CHANGE EVERYONE'S LIFE. WE WILL SPEED UP TIMES, YOU WON'T SIT ON CARMAX AS LONG. YOUR FLIGHT WON'T GO DOWN. THE DISSENT PATTERNS WON'T GO DOWN. YOU DROP FROM 20,000 FEET TO 15,000 FEET. YOU WILL HAVE DIRECT DESCENT IN THE AIRPORTS. THERE ARE CERTAIN AIRPORTS AND THE UNITED STATES THAT HAVE BUILT THAT TECHNOLOGY. YOU WON'T GO FROM WAYPOINT TO WAYPOINT THAT IS OUT OF THE WAY. YOU WILL SAVE JET FUEL IN THE PROCESS. SAVING JET FUEL IS COST EFFICIENT. HE WILL CONSUME LESS ENERGY IN THIS COUNTRY. IT IS ENVIRONMENTALLY VERY FRIENDLY.

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Cohn Says Privatizing Some Infrastructure Makes Sense

Gary Cohn, director of the White House's National Economic Council, comments on U.S. infrastructure during an interview at the 2017 IIF Washington Policy Summit. (Source: Bloomberg)

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