Link to November 15 Charlotte Observer article, "Lean times for Mecklenburg County: The new normal".
Excerpt: According to Vitner, the main reason for the decline in government revenues is what he calls "the monster-sized output gap." At current unemployment levels, Americans produce nearly $1 trillion less than they did at a time of relatively low unemployment.
The less production, the less tax income.
The gap "dwarfs anything we've seen," he says. "It's going to take the better part of a decade to close it." Even then, he added, growth won't be nearly as dramatic as it was.
Related article:
Massachusetts municipalities adjust to the 'New Normal'. (11/8/2010)
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