• foyrkopp@lemmy.world
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    9 months ago

    Suburbs can’t be a ponzi scheme

    Genuine question: Why not?

    While the article indeed barely touched on its headline, the way I’ve seen the “suburb infrastructure upkeep problem” described seems indeed reminiscent of a ponzi scheme.

    The way I understand it:

    Suburbs have a relatively low initial cost (for the city) compared to the taxes they generate. However, their maintenance cost is relatively high because Suburbs are huge.

    Thus, US cities have long had a policy of paying the rising cost of their older Suburbs by creating new Suburbs - which is pretty analogous to a Ponzi scheme.