-- 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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We might just have gotten to the point where the truth doesn’t matter anymore, partially because so few people have the expertise to understand these numbers. But also partially because we have gotten used to being lied to. Most reporters don’t understand the big numbers– they are journalism and communications majors with zero financial background. And how about the trustees on these pension boards. Do a bunch of teachers have any training to handle a $40 billion fund? How about a street cop? or a fireman? Maybe they are terrific human beings, but that doesnt make them financial professionals.