John, I think your over-abundance of public services may be due to your being in a capital city in a well-endowed region. Out here on the perimeter our weekly trash pickup service (three dumpsters for a town of 23 people) has been cut back to every 10 days. There´s no longer a summertime weed-and-trim employee to smarten up the plaza and streets in time for the fiesta del pueblo. The fiesta´s been cut back to a single day. The doctor still comes weekly, but most of us now must pay for at least part of our prescriptions -- and the doc now does not treat pilgrims who drop in unless they have a Spanish or EU health card, or they´re at death´s door.
Our Sanidad de Castilla y Leon health cards expired in March. We are still on the system ("in the computer,") but the department that sends out new cards has been eliminated. What happens if I get sick outside Castilla y Leon, with an expired card? No one knows.
Two bread vans used to stop here each day; now only one does, and now not on Sundays.
Electricity in July costs 30 percent more than it did in March.
Almost all the reliable builders, plumbers and handy-men who kept the place stuck together through the boom have now gone back home to Rumania, Bulgaria, Poland or Peru.
Most pilgrims never see or feel these effects. They need to guard against feeling too confident their foreign currency is the salvation of the camino town -- dozens of cafes and hostels and albergues have found they cannot survive the massive overhead (and tax and health and safety regulations and permits burdens) with the income gained from 10-Euro pilgrim menus and 6 or 8 Euro-per-person accommodations. (And those who would try to live on a donativo basis must be saints, or delusional!)
Perhaps the economic outcome I have noticed most on the Camino itself is the increased number of pilgrims sleeping out on the porch of the church, and busking, or begging for coins, or asking if they can work in exchange for food and shelter. Are these people pilgrims? Should they be treated as pilgrims, or are they in a class of their own?