Why Local Governments Can’t Stop The Spend - Schiff Gold
Why Local Governments Can’t Stop The Spend - Schiff Gold
Source: Schiff Gold
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DW NOTE
Local governments face the same arithmetic every addict does: the cost of feeding the habit compounds faster than revenue grows. Pension obligations locked in at 7% assumed returns meet tax bases that expand at 2%. The gap gets plugged with bonds, which create debt service, which crowds out maintenance, which defers costs into bigger future crises. It's not a spending problem in the sense that discipline would fix it — the structural promises exceed any plausible revenue path.