CITIES: Spend at Home

• Share

State legislatures and city council chambers across the U.S. regularly ring with politicians' warnings against "increasing concentration of power in Washington." The truth is that the main power of government—to spend money—is being claimed by legislatures and city councils at breakdown rate. Since World War II the states have increased their spending 15 times faster than the Federal Government; .city governments have increased a hefty 18 times faster. In fiscal 1957 alone, reports U.S. Census Bureau after a year of figure collecting, cities upped total expenditures 13% to an awesome $12.8 billion. .By comparison, federal spending for 1957 nondefense, domestic items was $24.2 billion.

Much of the new municipal money, poured into overcrowded streets and schools, was scrounged from an average 12.5% rise in sales taxes, an 11% hike in debts. And many state legislatures and city councils are girding themselves for record inchings-up in tax rates next year.