-- Connecting the dots between our economy, government and business --
Summary and audio linked here.
Chicago’s political leadership is floating a pension buyout program as evidence it is seriously addressing the city’s thirty-six-billion-dollar unfunded pension liability, but Mark Glennon, founder of the Illinois policy research organization Wirepoints, said that the proposal moves debt from one column to another rather than reducing it, and that the broader fiscal picture facing the city continues to deteriorate across every measurable dimension. Audio here.
Expect no retraction or apology. This what they do.
The state’s existing buyout program for its own pensions is the precedent for Chicago, which should be a warning: Look out for similar exaggerated claims and shoddy analysis.
Full interview and summary linked here.
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My thoughts are the Illinois insurance are fully aware of the decline in insurable values in Illinois. They know that they must continue rate hikes in order to continue their rate of pay just as well as the employed State workers to continue their lifestyle.
Just another ingrained system in the State of Illinois.
Best option for openers is a reboot of the governor and the mayor and everyone they have appointed. Reboot = boot them out via recall or if we can’t do that, elect replacements ASAP. Their legacy will take years if not decades to fix. Rome was neither built nor destroyed in a day. The main problem is to find believers who will invest. We should deflect offers of Federal “investment” because that will come with strings attached which will make problems worse. It will also a slow process to “re-educate” the citizens/voters. Step 1 will to create incentives to work… Read more »
Commercial real estate used for administrative office work is easily replaced by a VPN and video conferencing. And its beneficial for companies to do that. Less overhead, and they can hire any talent from a talent pool across the world, not just from the people who can get to their building within a reasonable 30 minute commute. Its a no-brainer for all office-type work to go virtual. Manufacturing, warehousing, brick and mortar retail, thats another story those buildings can’t go virtual.
So given this trend, what will be the long term outlook for places like Chicago? There will be a lot fewer office buildings… There is a non zero percentage of knowledge workers who would prefer to live elsewhere insead of living within walking distance of a non-existent office space.
There are plenty of people checking out of Illinois for friendlier states via telecommuting or whatever you want to call it. They leave for any number of reasons, such as excessive taxes, out of control violence, too much woke BS or even something as simple as the climate. This new found freedom to move will only exacerbate the decline in population in the hell hole known as Illinois.
All these corporate edifices are now nearly worthless. Who has enough in-house employees to fill these cathedrals? It won’t be mattress stores. People like working from home! In my day it was called telecommuting, wink, wink.
Toll Brothers will develop the land into $800k+ luxury townhomes like they did at The Glen. Or maybe they’ll build another shopping center with the 15 stores that are at every other shopping center (Target, Forever 21, Ross, PetSmart, Staples & Jimmy Johns, etc). We need more strip malls!
Uh oh, the extension parcels in the property taxing pies might change sizes.
Selling their HQ is step one. Step two is moving the virtual HQ to a different, more business friendly state.
Keep up the good work, JB!