Department of Can-Kicking
Municipalities Mortgaging Their Futures
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  • Anthony

    Scoop and toss essentially saddles post generations with accumulated debt. Concept/instrument needs more “sunlight” as many municipalities resort to its availability.

  • Bruce

    The states and municipalities have learned well from the Feds.

    • Kavanna

      Just wait til the Fed is arm-twisted into buying municipal debt.

  • AD_Rtr_OS

    CA has been doing this for years, issuing long-term debt to pay current term costs. It is not something that will end well.

  • Jim__L

    We typically spend two years out of every eight in recession.

    So, Keynsian economics might be workable (to a first approximation), if we spent two years at six percent deficits, then six years at two percent surplusses. But no one seems to ever want to run a surplus, as that would require higher taxes, lower spending, or (horror of horrors!) allowing government revenue to remain unspent.

    Politicians can’t be trusted to make Keynsianism work. State and civic debt issues need to be constitutionally tied to tax hikes or spending cuts. Federally, it is completely justified to make every Debt Ceiling vote contingent on a similar budget-balancing efforts.

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