-- 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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$28,000 in debt is actually not too bad. Trust me, I graduated with A LOT more and that was 20 years ago. But if a 22 year old graduates college with a $50,000 a year job (or works up to that within a few years of experience); the payment at 6% is about $550 a month for 5 years or $310 a month for 10 years. At $50,000 a year you’re taking home about $3,000 a month, maybe more or less depending on health insurance, and you’re 22 years old. So pay off the student loans, leaving $2,450 a month… Read more »
They also should base the amount of the loan on the degree being pursued. Some degrees are worthless and will just get you a job with limited advancement opportunity. I don’t think they should be discharged but I think at some point you stop the interest and what you pay is a function of your taxable income.