Or if new construction is impossible, they could also encourage companies and residents to relocate somewhere else, thus reducing the congestion burdens on those who remain.
But what city with taxing authority would ever do this? As long as cities can take revenue from everyone regardless of their satisfaction with the city, there is a perverse incentive to oversubscribe city services. Since they are a monopoly over their whole territory, it is the same pressure as upon telecoms to add more customers without building out infrastructure.
But what city with taxing authority would ever do this? As long as cities can take revenue from everyone regardless of their satisfaction with the city, there is a perverse incentive to oversubscribe city services. Since they are a monopoly over their whole territory, it is the same pressure as upon telecoms to add more customers without building out infrastructure.