Why American Cities Are Broke - The Growth Ponzi Scheme [ST03]

Caption notes

In this Strong Towns episode, Not Just Bikes asks whether tax revenue and low initial construction costs from new development cover later maintenance and replacement. A hypothetical street illustrates his argument: new infrastructure initially needs little maintenance, while cash from subsequent projects can conceal obligations coming due on older assets. Slower growth can expose the gap. He calls this the “growth Ponzi scheme” while explicitly distinguishing it from intentional financial fraud. Use the argument to ask for a development’s full lifecycle accounts. This guide does not independently validate the graphs, local case studies or cost figures, or establish that every suburban municipality is bankrupt.