7/22/09

City Council PresentationJuly 21, 2009

Good evening,


 


My name is George Hartzman and I teach financial ethics


and economic professional continuing education.


 


It is my understanding


that The City of Greensboro increased total debt outstanding


by about 850% since 2000,


850% in nine years,


and the Council authorized the placement of 35% more debt


on last November’s ballot.


 


When municipalities borrow and spend money,


the community enjoys the immediate economic benefits


 


The problem is, when you spend money in the short-term


by borrowing in the long-term


you are indirectly taxing the future income of the community’s children


who were ineligible to vote?


 


It’s not like when a parent dies,


and creditors eat any outstanding liabilities larger than assets,


leaving their children debt free.


 


Greensboro’s young


will have to repay principle and interest


on relatively large sums of debt


after the stimulative economic benefits of spending the money


have passed.


 


Thomas Jefferson wrote spending money to be paid by posterity


is but swindling futurity on a large scale.


 


Let’s give Greensboro a better chance to succeed


than our forefathers gave our parents


and our parents gave us.


 


Let’s not spend more than we make.


 


Let’s prioritize expenses, maximize what works and eliminate what doesn’t


and prepare for what could happen after what may happen next


 


Thank you


 


Dear readers, if you believe in what we are saying,


please pass this speech along to everyone you know.


 


Disseminating critically material information


that a status quo may not want you to know


can transform a status quo that needs it.

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