## The Asphalt Ponzi Scheme

When a developer builds a sprawling, low-density subdivision of single-family homes, they lay down miles of asphalt, sewer pipes, and water mains. Once the houses are sold, the developer leaves, and legally hands the maintenance of those pipes and roads to the local City Government. The Mayor celebrates the "Growth" because they are about to collect property taxes on 300 new homes.

### FAQ

**Q: Why are American suburbs mathematically bankrupt?**
A: The Geometry of Sprawl. Asphalt and water-mains have a lifespan of about 30 years before they crumble and must be completely dug up and replaced. In a dense, walkable city neighborhood, 100 feet of road is paid for by the high property taxes of a 5-story apartment building housing 40 taxpayers. But in a sprawling suburb, 100 feet of road only serves *two* houses. The property taxes generated by those two houses are mathematically minuscule compared to the massive cost of replacing the infrastructure spread out in front of them. For the first 25 years, the suburb looks rich. But at Year 30, when the bill comes due to rebuild the sewers, the city realizes the subdivision didn't generate enough taxes to pay for its own existence. The city must then frantically build *new* subdivisions just to use the new tax money to pay for the failing pipes of the *old* subdivisions—the literal definition of a Ponzi Scheme.