Comment 41282

By BobInnes (registered) - website | Posted May 29, 2010 at 15:05:24

woody10, you think a stadium and a bunch of restaurants will actually stop the Hamilton slide/ welfare dump? You think we are sliding because we don't have these things? If we accept that welfare dumping is caused by low cost of living which comes from relative low cost of housing, then tell me exactly how a new stadium improves that. My logic goes something like this:

stadium > debt >taxes > spiral starts by depressing effect on RE pricing > higher tax % > incentives die > reduced development > reduced tax assessment > reduced revenues > inability to fund productive activity > continued loss of businesses > lower employment > higher welfare > go back to beginning of spiral. There is an economic term for this, maybe our pedigreed bigguy can remind us what it is.

Thanks hshields for an excellent analysis, even if it is a bit depressing.

Frogs, the pot is getting warm.

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