Silverlink trains hasn’t always been this big. A lot of people like to say that this company has always had millions of dollars to invest in private infrastructure.

This is not true. It actually started in somebody’s classroom.

The founder of Silverlink trains was a public school teacher who was asked by one of his students one day, “Who will build the road?”

The standard answer up to that point was of course, the government. When a road network needs to be built to link different towns, cities, states, or even countries together, it’s usually the state or the government that steps up.

After all, it’s the government that has the money, the expertise, and the grand vision for these kinds of things. This went unquestioned for a very long time until of the budget crunches of the 1970s.

In fact, the budget ordeal and crises gripping many different state actors all over the world continues to this very day. No matter how high tax rates are, countries, states, localities, and municipalities continue to be strapped for cash.

It doesn’t matter how high the tax rate is, as I keep saying. Why? Interestingly enough, the higher the tax rate, the less taxes get collected. Sure, people who get hit by high tax rates will pay more tax.

However, you can bet that they will set up their books and accounting in a perfectly legal ways so that they pay as little tax as possible. This is human nature. You should expect that reaction.

Unfortunately, the big loser in all of this is the public infrastructure user. This is why the teacher who was asked that question came up with an innovative answer. He said, “Well, general it’s the government, but it can also be private people.”

From that seed of an idea, Silverlink trains became a reality. It started off with borrowed cash to finance a simple alley project that ended up being paid for by the city.

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The company then started funding portions of subways and highways until they started funding complete single highways. Then, they went on to highway networks as well as inter-highway networks.

The city just needed the roadway financed for a short term. The quick turnaround of that project, which took all of 90 days, inspired the founder of Silverlink trains to think bigger.

The interesting thing about infrastructure is that you really never run out of projects to fund because money is that scarce. It really is.

As government payroll increases over time as a completely local state, municipal, county, and the federal governments get bigger and bigger, much of the tax revenue is actually eaten up by payroll. It really is quite crazy.

That’s why infrastructure has for the most part, been an afterthought. I’m not just talking about the United States, but in many parts of the world.

A lot of this has to do of course, with corruption. Since it’s easier to hide corruption and fraud when doing payroll or consulting fees than with brick and mortar infrastructure projects that everybody can see.

Still, the end results were the same. There simply wasn’t enough money to go around. Silverlink trains took advantage of this sad reality.

When compared to the social profit generated by a purely government-financed infrastructure program, Silverlink trains is actually much cheaper. That’s right.

Society as a whole benefits more form public-private partnerships of whatever stripe and whatever brand much better than direct government investment. How come?

Well, you only need to read the political scandals on social media and traditional newspapers to get the answer. A lot of the budgets allocated to infrastructure are actually wasted.

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Either there’s all sorts of self-dealing, conflicts of interest, or other shades of corruption. Whatever the case may be, things don’t pan out as expected. That’s why private infrastructure funding is here to stay.

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