Snow Storm’s Transfer of Wealth Stressing Government Budgets
New snow has arrived in the DC metro area. This gave tri-city locals only a few hours to re-up essential supplies and get some much needed recovery rest.
The roads are now narrower. There is a considerable amount of ice to deal with in the mornings. Large snowbanks are abundant. Grocery store parking lots are full of cars while other stores are simplyl closed. Baltimore is over flowing…so much that officials were forced to dump excess powder in the inner harbor (they know about the run off. no other choice here) .
This morning we talked about the massive transfer of wealth that isrnknown to occur following an unexpected environmental event. While a substantially large economic opportunity hasrnpresented itself for many snow pushers, at some point one has to wonderrnwhen the laws of diminishing marginal utility take over. At what pointrnis there too much snow to plow? Are the county governments already outrnof snow emergency funds?
PG County is TRYING TO FIGURE IT OUT
The SAME THING goes for Dover, DE
…and in ANNAPOLIS, MD
While the surge in snow provided great economic opportunity for many folks, the massive transfer of wealth occurring appears to be stressing the local financial system. Choices will have to be made…budgets will have to be re-arranged and added costs will be spread socially via tax adjustments and new fundraising efforts…like having the police paint cars with parking tickets.
Plain and Simple: sometimes a little snow is great for the local economy. sometimes too much snow can strain the budgetary limits of the local economy and result in added costs for all. no more snow!
Think about how unexpected events like snow storms can affect the budget of local goverments. I think the same thought process can be applied to the macro-economy at the moment and our own budget concerns. (wars, financial crisis, etc, etc)
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