In the US, the old order of municipal services is dying. I suspect in some of the large Canadian cities, too, that the extent of municipal services has maxed out, and, will drop from their current level.
THE US IS JUST GETTING POORER.
I am not discussing class differences, here, but, I am stating that the net taxible income is continuing to drop, and, that almost all governments at all levels, from city through federal*, are experiencing a decline or at least a leveling off of tax revenues.
A) Level off means a drop of taxable income, because commodity prices and health insurance costs are increasing (the inflation is far higher than reported).
B) The post WWII municipal (and to a lesser extent State, and, even lesser, Federal) government employee is increasingly becoming unaffordable, due to pension, health cost, and, wage requirements.
C) The gasoline tax, today less than 10% of retail pump costs, has been effectively frozen by politicians who can only get re-elected via contributions from a few, very wealthy individuals. Even without any contribution to public transportion from the gasoline tax, the levied tax total is lowering with consumption (our roads too often are falling apart).
Perhaps public transportation will morph into a semi-legal system of vans and old buses, with drivers paid 2 or 3 gallons of gas equivalents per hour. Maybe private enterprise along the WalMart mold will step in and provide non-union, non-pension drivers running buses. **
Rest assured, the collapse in services is just starting.
*Only the Feds can print money. Right now we are running about a 35-40% net deficit, covered with printed money laundered through the large finance houses.
**This will involve changing liability laws, easing licensing requirements, etc.
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