This is exactly what is happening right now to Warwick: As the - TopicsExpress

This is exactly what is happening right now to Warwick: As the unfunded liability for a city rises, it can fall into a death spiral. The city initially raises taxes to pay for its promises. In response, the private sector contracts as individuals and businesses move to less burdensome locales. The more people there are who leave, the higher the rates have to be. Meanwhile, the quality of the city services declines as more of the city’s revenues are used to pay for retirement benefits instead. That in turn encouages even greater exodus of the people and businesses that form the tax base. forbes/sites/johngoodman/2013/07/25/detroit-is-a-dying-example-of-how-all-ponzi-schemes-end/

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