Taxation and the middle class

[plam]

I agree. There is a distinction that should be made here though. The city does not set monetary policy, and cannot run a deficit. During a recession, the federal government (which does set monetary policy) should run a deficity by keeping taxes low and spending high in order to accelerate the economy. We do a decent job of this despite the doomsaying of various self claimed fiscal conservative governments. Of course, on the flip side that should reverse during times of economic growth, but we seem to have substantially more difficulty with that one (no matter which government is in power).

Can finance capital expenditures through bonds but I suspect that one can't finance routine maintenance through bonds.