David Schleicher on the Fiscal Whipsaw in State Governments
Very Serious with Josh Barro
00:00
The Pressure to Budget Responsibly
Shrinking places have a particular difficulty, right? Because you build services and you have pension liabilities built on a formerly large city. When things start going badly it creates a political pressure to do crazier and crazier things the same way that you see a bank in downspin. And so if you're a Cleveland and you have these boom periods where you get less faded, the pressure is even greater for you to budget responsibly. There's no light at the end of the rainbow in terms of just, you know, you could think about New York and California having this huge excess capacity that they're just choosing not to use.
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