The City of Oakland, California (approx pop 350,000) announced that it would be cutting all departments except fire and police by up to 10% due to revenue not meeting expectations. The shortfall of $50,000,000 is about 10% of the overall city budget. The police dept was already undermanned and not spending its allocated budget.
Governments and politicians can promise anything they want. Eventually the citizens have to have the incentive to deliver the wealth to finance all the promises. If the government squanders the public money, the outcome is cuts, cuts, and more cuts in public spending.
If California had a California dollar, their currency would tumble. Since they cannot devalue their currency, the alternative outcome is a severe recession until conditions are so enticing to attract new wealth-producing investments.
More, much more when you subscribe to The Peter Dag Portfolio on https://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
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