Third world America

Tough choices continue to be made as local budgets are slashed from decreasing tax revenues. I would add that third world countries do not have the luxury to print currency to fund their stimulus and injection programs, so the headline is a bit too "shock and awe" for me. The stark reality of contracting government services on a society increasing dependent on them can give the impression of a transition into a 'third world' from a country used to a high standard of living.

Even with interest rates at unprecedented lows, there is anxiety about the possibility of a double-dip recession. Sales of existing homes are at their lowest level in 15 years, and new home sales plummeted this summer to the lowest levels on record. Property and sales tax revenues have shrunk. And nowhere is this more apparent than at the local government level, where officials are being forced to roll back the everyday hallmarks of modern civilization.

Source: www2.macleans.ca