Topic: Slump Hits Home, Cities Downsize 

Written by Chris Titus, CFA

Date:   Tuesday, December 22
Time:   15:00 GMT

Language:   English
Level:   Intermediate
Summary - The local impact of the global recession

Warm Up

• Describe the global crisis' impact on your local community

Vocabulary and Definitions (difficult words in video or article):

• word:  slump
• word:  wages
• word:  investigative
  
• word:  festive
  
• word:  tax receipts
  
• word:  decade
  
• word:  ragged
  

Article (Except)

The police department in this city of 200,000 has lost about 10 officers, and is hiring civilians to do investigative work for lower-wages. The children's baseball teams must pay the city $10 an hour to turn on the field lights. The library is no longer open on Sundays.  And, city offices are now closed on Fridays. Even the festive lights of years past no longer decorate the downtown streets this holiday season.

Springfield's tax receipts, hit by the recession, are not expected to recover anytime soon. Mayor John Stevens doesn't believe city services will return to pre-recession levels for a long time, if ever. "We are redefining what cities are going to be," says Mr. Stevens.

Residents do not like the new definition of their city and its related services.  Residents like Homer Gregory, who has lived in Springfield for more than three decades, noticed the city's parks "looking a bit ragged".  He is unhappy that the library cut back its hours and misses the Christmas lights. "It was really beautiful," he says.

Discussion Questions (used to keep the conversation going):

Paragraph 1

• What recent changes did the town make?
• Why are civilians doing some police-related work? What kind of work do you think the city is giving civilians?
• Why do you think the town made so many changes?
• What kind of decorations does your town put up around the holidays?

• What are tax receipts?
• What is the difference between tax receipts and expenditures? When do you have a surplus or deficit?
• Do you believe that most cities' services will not return to pre-recession levels? Provide your logic?
• How are they redefining what cities are?  Provide your own new definition of small and large cities.

• Describe a park that looks ragged?
• Are there any services you miss in your city due to cut backs?  If so, which?
• How long has Homer Gregory lived in Springfield?

Role Play or Activity:   

You are the mayor of a small city.  You are currently running a deficit (tax receipts < expenditures).  List the different services your city offers.  Now list the services you will eliminate or reduce.  Prioritize them and provide your logic.

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