The key reason that communities are struggling is the huge burden of interest payments that are flowing to the big banks. Think about this, if you buy a home for say $100,000 dollars, typically you will have paid $250,000 once the loan is paid off. This means the typical loan will incur $150,000 in interest charges.
The same concept applies when a community builds an infrastructure project such as school, road, bridge, sewer or other project. That $1 million dollar school could end up costing taxpayers in the community $2.5 million after interest charges.
So taxpayers are paying more to the financiers of the project than to those who supplied the materials and actually did the labor to build it. Are you OK with that?
If we look at cities like Detroit and Philadelphia, hundreds of millions of dollars in interest payments and fees are leaving the city and flowing into the coffers of Wall St. This lost money impoverishes your community while Wall St gets bigger and richer than ever. More in the video below.
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