-- 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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What Kaegi is really saying is: We know your major asset is worth 1/3 of what it was before we screwed everything up with COVID shut downs that didn’t work, but we’re broke and need the money. So we are going to act like the asset is not worth 1/3 of what it was and take the position that it actually increased in value. Thereby ensuring that you will pay more tax on an asset worth far less. Such a deal. Enjoy. You earned it.