The Smart Bunny’s Guide to Debt, Deficit and Austerity

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The reader is left wondering whether he might have done more when president to reduce income inequality through tax reform.

But between them they have produced a readable book about the consolidation of democracy in Latin America. The pity is that it could have been a much more profound one. No fistful of dollars here, alas. Both are in short supply at the moment. Amid this deepening financial crisis the state of Michigan, local unions, the mayor, the city council and the courts are battling over the future of Motor City.

The simplest solution, a state bail-out, is tricky. Both the governor of Michigan, Rick Snyder, and the head of the state's House Appropriations Committee, Chuck Moss, argue that yet another infusion of cash will not solve Detroit's underlying problems. Detroit's financial problems have been building up for decades. City revenues have been hit by the collapse of manufacturing, declining property values and the flight of better-off people to the suburbs.

At the same time, the cost of servicing a still-sprawling city has not shrunk in proportion. Like many of America's struggling municipalities, Detroit is paying pensions, entitlements and salaries far larger than it can afford. Without new loans, the city will run out of cash in mid-May. The state is pushing it hard to sort out its structural deficit.

Late last year it began a financial review of Detroit which was the legal prelude to bringing in an unelected emergency manager, as Michigan has done in several other distressed cities. Mr Snyder has said he would rather not use these laws in Detroit, and there is reason to believe him. Not only have they never been applied to a city this size, but the takeover of a black city with an all-black mayor and council by a white governor has become racially charged.

Deficits and debt - AP Macroeconomics - Khan Academy

At one recent public meeting the crowd was unruly. This would avoid a takeover, but would still set out exactly how the city must extricate itself from the crisis and manage itself in future. However, the agreement had to be signed and sealed by April 5th; if the deadline was missed, an emergency manager would probably be appointed.

Aspects of the agreement are controversial, particularly with the city's labour unions. It would set up a Financial Advisory Board to oversee the city's restructuring, recommend cuts in services and appoint a chief financial officer CFO. It imposes tough terms on future union contracts, a chief cause of Detroit's financial malaise, and insists that all existing contracts, even those recently ratified, can be reopened.

The financial advisory board would be appointed by both city and state, and would have to approve new labour agreements before they went to the mayor and city council for ratification. The CFO would be chosen by the mayor from a list of at least three names submitted by the governor. And if, after all this, the city failed to meet the required savings targets, Mr Snyder could still appoint an emergency manager. The city council's response to the consent agreement has ranged from resigned to downright hostile. As The Economist went to press early on April 4th, the nine members had delayed voting on it.

Meanwhile, a coalition of unions has gone on the attack. They argue that the agreement was negotiated behind closed doors, rather than openly as the law requires, and want a federal judge to stop the city and state signing it. The judge said late on April 3rd that he will rule on the matter by April 9th: in other words, after the deadline. Whether by a consent agreement or an emergency manager, Detroit's freedom of action is already tightly constrained.

The alternative, though, is bankruptcy. STILL under construction, the Shard, a storey skyscraper near London Bridge measuring metres, is already the most visible building in the capital. When it is completed in April , it will break another record, as the tallest inhabited building in Europe—Renzo Piano's pointy monument will include ten flats, as well as shops, offices and a smart hotel.

In Britain, tower living has long been confined to stigmatised blocks of social housing. The Shard and other new skyscrapers have made it the preserve of the super-rich. In the s and s hundreds of tower blocks were built across Britain to replace bombed-out and slum housing, meant to be beacons of modernity with inside loos and central heating. But many were poorly and cheaply built. Tower blocks became symbols of all that was wrong with council housing, seen as ghettoes of deprivation, isolation and crime.

Understand Modern Monetary Theory (MMT),AOC is right on that too.

For a long time that social stigma, combined with restrictive planning rules and a powerful heritage lobby, inhibited further lofty schemes. Skyscrapers are even rarer: only around 50 blocks of more than metres are being built or in use. Poor security and maintenance are easily remedied. Building technology has improved: lifts are more reliable; plumbing is good; noise insulation better; steel and glass are prettier alternatives to slab concrete. Many people have come round to this idea. Some older social-housing blocks have been renewed.

Glasgow, Manchester and Newcastle have modern towers too. Demographic trends make London particularly suited to tower living. Households are getting smaller—more folk live alone, as young people delay marriage and old people live longer. High-rise living may appeal to singletons, whereas families often shun them. Skyscrapers, particularly swanky London ones, are also popular with overseas buyers.

Rocketing prices for prime property in London have made such buildings viable. But London high life may soon reach its limits. Because towers take so long to plan and construct, the current crop reflect a vision up to a decade old, reckons Nick Offer of Arup, an engineering firm.

Economic conditions and the scale of such projects mean that only the very brave will invest now, he says. And the political climate is no longer conducive to building new tower blocks. In the coalition scrapped the previous, Labour government's density targets, which were designed to encourage developers to build more units. THE old Rackspace headquarters was stuffed to the gills. In the company, which offers cloud-computing and web-hosting services, had more than 1, employees in downtown San Antonio.

People were crammed at folding tables in the hallway. They often had to go to a different building or shuttle around the lifts to talk to people in other departments. Still, when Graham Weston, the company's co-founder and chairman, suggested that they move into a shopping mall, staff were sceptical. The mall was vacant. Its site, the encircled suburb of Windcrest, was slightly grotty, not least because of the huge dead mall right off the highway.

Building a campus from scratch, however, would have taken several years at least. Anyway, the place was cheap.

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Except Rackspace, and others like it, who have come to see a dead mall as a blank canvas. In it opened its new headquarters, and won a prize for community economic development. Now it has more than 3, workers on site, with plans to hire hundreds more by the end of the year. Plenty of enclosed malls are, of course, still thriving.

And after several abstemious years, shoppers are perking up. In February, according to the Commerce Department, retail sales were 1. But many American malls had run into trouble before the recession started, and the country's nascent recovery is not likely to revive them.

America's retail sector is probably overbuilt; in the fourth quarter of , according to the National Association of Realtors, its vacancy rate was Your download The Smart managed a item that this blood could quite be.

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