Government: Get ready for a kick in the pants

Over the last several years, as most of us who weren’t living under a rock would know, the housing market grew exponentially, then collapsed in a blaze of glory, when it was determined the inflation was completely baseless and a sudden and devastating collapse ensued. It might surprise those few regular readers of Sagamore to learn that municipal government spending also grew at unprecedented rates during this period, as a result of ever growing property tax revenues. And surprise, cities and states across the nation are now on the verge of another budget crisis. This article describes a similar event that occurred in the 1930s, and its portents are a bit ominous.