Quote:
Originally Posted by Slava
I'm not sure I understand what you're saying here. Lets say the project was the 407 in Ontario, so basically CPP pays and builds this, and then operates it for the return. The citizens get the infrastructure piece, the CPP gets the profits. Seems to make sense and no one is losing much because presently these projects are run by corporations anyway.
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Consider the alternative:
Government issues bonds.
CPP invests in whatever it wants to invest in.
Done this way CPP should be getting a higher rate of return than the government bond rate. That spread is impossible if government is borrowing from CPP.