Why don't municipalities SAVE, then spend?

To: planetmoney(at)npr(dot)org

Hi guys. I love the Planet Money podcast. Maybe you can help me understand this.

It seems so simple. Yet I never hear anyone talk about it.

David(?), near the end of the Wisconsin/Ireland/Germany podcast:
"There is a tragedy here too. Over the last 30 years there have been a series of financial innovations that have just been plain good. They have allowed city governments, local governments to get money more cheaply."

Every year a million finance professionals invent new, complex ways to enrich themselves without actually producing anything. Every such web will eventually collapse under the weight of collective greed.

...

So why don't cities and individuals SAVE money, THEN spend it?

Why don't we all do this?

I hope you can help me understand. :)

Thanks,

Jay Hannah
Omaha, NE
http://jays.net