This article talks about how cities in America are struggling financially to work on their local problems. All these problems started during the financial recession where local governments could not raise enough funds to run their local governments. This has affected local leaders because they cannot fulfill their promises to the people who voted for them.one of such cities is Newark (New Jersey) where they still face problems of unemployment, health care cost and decrease in retirement benefits.
The article shows how different cities are facing big debts because they borrowed a lot of money to take care of short term problems. These immediate problems included balancing city budget in order to take care of things like retirement benefit and the rising health care. Many leaders are forced to borrow money from financial institutions which force them to pay big interest later, these are such big decisions to make.
Although cities face a lot of challenges, leaders are able to borrow money to take care of immediate problems to fix budget issues but the money borrowed comes with a big price of putting cities in long time debts which affect the development of various projects.Unemploymet is the biggest problem because people are forced to ask for help from their local governments through food and housing because many people cannot afford food and pay rent, this has led to overspending hence putting cities in more debts. According to the article, these long time debts are caused by leaders who don’t have financial knowledge that end up just borrowing money to solve short term problems hence putting cities in big debts down the road by paying big interests.
According to the article, the financial meltdown that happened in America in recent years has affected the central government and cities across the country. In order to overcome all these problems, leaders need to make