-- 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 have seen this movie before. Think Detroit.
Only worse. This time the state is also structurally insolvent.
I am surprised they have not brought up a capital excise tax on assets.
From Wikipedia “Some of the named causes for the Detroit bankruptcy are the shrinking tax base caused by declining population, program costs for retiree health care and pension, borrowing to cover budget deficits, poor record keeping and antiquated computer systems, 47% of owners had not paid their 2011 property taxes, and government corruption.Two city workers pension plans had for nearly 25 years been paying out “13th month” checks. Hmmm, any similarities?
Yet another sad comment on the current state of the Illinois electorate. The evidence doesn’t take much work to find, and most are too lazy to even do that. But If there’s one thing politicians love, it’s low information voters.