-- 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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The key point is it’s data from the IRS, not a source that could be accused of cherry picking data to support their cause, like I’d expect a politician to do. As I remarked in an email to Mark last year, his reporting reminds me of a quote from the book version of The Big Short. Eisman on page 15 speaking to mortgage lenders. Lenders-“You’re wrong, Your data’s wrong.” Eisman-“It’s YOUR f*****g data!” None of the conservative outlets need to make anything up when the truth is so bad. I made my decision to move based on the city/state CAFR’s… Read more »
Flattered. Eisman is my hero.
I posted on Rep. Emmanuel Welch’s Facebook page the original Illinois Policy article and asked a neutral question of what he and other legislators were going to do about it. This was his response: “This article was written by the extreme right wing think tank that is funded by Bruce Rauner. In 2015, Illinois was in the midst of what would be a record budget impasse, a crisis created by Rauner. Many of those that fled the state, left because Rauner destroyed our higher education system. What am i doing to fix it? Working like hell to replace Rauner who… Read more »
I’m not sure why it still shocks me but it does. Denial and finger pointing is all they know. The math will not be delayed or denied. My heart breaks for my beloved Illinois. We’re one recession away from disaster.
I tried to find that Facebook entry by him to tell him what a liar he is but I could not find it. That’s what infuriates me the most. They lie with impunity, consistently. The data are the IRS’s, not Illinois Policy’s. The budget impasse had no effect on 2015 migration — the impasse didn’t even start until July 2015. Rauner is hardly the only one to blame for the impasse.
Here might be a better way to say this. In Illinois, the state and local government can claim 22.8% of your after-tax income. Instead of government working for you, you are now working for the government. When it comes to property taxes, your government is your landlord and you are paying rent to them.
Like a bunch of ostrich’s with their heads buried in the sand, meanwhile there’s a guy walking up with a machete behind them. The next recession is when the machete comes down and decapitates taxpayers. I don’t know when it will happen, but it IS going to happen.
You are absoulutely right, Bo!