UCF economist: Population growth is Florida's Ponzi scheme - What other Ponzi schemes are out there

UCF economist: Population growth is Florida's Ponzi scheme
By Drew Petrimoulx @ March 31, 2009 3:03 PM Permalink We told you the poor economy has Florida's population growth on the decline. That may be bad news for the state and local governments are already reeling from budget cuts.
UCF economist Sean Snaith calls it "Florida's Ponzi Scheme."

"More people coming in providing the funding to finance government spending," explains Snaith.

When people stop coming, the house of cards falls.

"We're seeing a budget crisis continue to worsen in Tallahassee," Snaith says.

Seminole and Volusia Counties are actually expected to shrink in population over the next two years. Snaith says that'll force tough choices.

"Spending can get cut or revenue can be raised via tax increases," he says. "I think we're likely to see some of each."

Snaith suggests closing some loopholes on sales taxes and looking at a state income tax, but he calls the latter "a political third rail."

Tags:Sean Snaith