Many of us believe and practice that when you want something, you should save your money and buy it. At least, that’s what we tell our kids to do if they wanted candy or a video game.
Some purchases, though, we justify going into debt for. Some say education, cars, or homes are so crucial for making money that they’re worth it.
But the City has a far bigger budget than most of us have. Why can’t they save up and pay cash for big ticket items?
The simple answer: the State doesn’t let them.
The more complex answer: due to the ebb and flow of politics, just because money is saved for a good investment, doesn’t always mean that it’s used for that purpose. To protect the Citizenry from politicians wasting their hard earned money, the State limits Cities’ savings to 35% of their income.