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by avidiax
1258 days ago
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There are two sides to this coin. The roads need repair continually and resurfacing eventually, yes. What happens when property values and the local economy begin to deteriorate instead of prosper? All those utilities and public rights of way still need those repairs, but there's no appetite to raise property taxes, and the tax base is dwindling, and there's little reason to keep paying the mortgage on a depreciating house, especially once 2/3rds of your street is gone. How sustainable is a system that requires perpetual good times? Calling it a ponzi scheme is a stretch, but this guy seems to be the only one talking about this:
https://www.strongtowns.org/journal/2020/8/28/the-growth-pon... |
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Also easy expansion is more a function of interest rates than anything. Municipal bonds buy everything and there’s been very little interest on them. This means fewer taxes to buy things. And new bonds can be sold down the road as the town increases tax base and interest rates fall.