-- 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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I was recently at a well attended university soccer game and looked around at the stands s people cheered their home team. I thought in my mind how many of these fine Illinoisans’ had any idea about the pension situation? To be sure they were all quoting various team player statistics yet know nothing about something that really affects them financially. All in all Illinoisans’ seem to be, to me, members of the “eat drink and be merry because tomorrow we may die” crowd but one thing for sure is those pensions will be paid. Funny how they have no… Read more »
Agree but how many of these students are aware of the problem since very few if any own a home/pay a mortgage or even pay taxes? Unless there are classes or more importantly social media to discuss the financial problems that Illinois and taxpayers have they are clueless. Are there any colleges that teach about the Illinois mess? Khan Academy has a video on Illinois pensions. Worth watching.
https://www.khanacademy.org/humanities/us-government-and-civics/american-civics-parent/american-civics/v/illinois-pension-obligations
I’m not sure Riverbender was thinking about the students there from the theme of his message, so your take otherwise is reasonable enough but was a surprise to me as his audience focus seemed elsewhere to me at least. Students surely don’t ponder such topics all that much, I’d think. Its not yet part of their life’s problems.
Bailey correctly identifies the true outcome. Pay more now or pay even more later.
In a way it is like musical chairs meaning will the bomb drop in my lifetime or will the band aids work fine during my lifetime just kicking the more increasing costs down the road till after they die. Thinking here perhaps all Illinois real estate should contain in the deed the warning like cigarettes do about how owning Illinois real estate can be harmful to your financial health.
There is a Pension Time Bomb Exploding right now. Only going to get bigger and bigger. They only way to avoid be destroyed economically is to leave ASAP. Soon all the equity in your house will be taxed away. Soon the total tax burden will cause a major drop in your standard of living.