-- 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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With every one of these hair brained moves they make the break even point for automation less and less. At $22 an hour you have to add an incredible amount of value to the process you perform to justify your hourly wage.
There are more costs to an employer of an employee than just the hourly wage. In California there is workman’s comp insurance, federal and state unemployment insurance, medicare and social security taxes, and an employment training tax. I have to assume this cost is at a minimum, 10% of the employee’s wage and probably higher. So your $22/hour employee is costing the business about $25/hour.
I’d like a small ice cream cone please, “That will be $23.17”.
Either automate or go out of business
This is fast food companies’ cue to automate more.
Illinois should do the same thing. Everyone in Illinois should be guaranteed $25 per hour whether they work or not. Just end all pension contributions and there would be more than enough money.
I forgot to mention, I’m an idiot
$22/hour for fast food workers?
How much are they going to have to charge for food with that overhead?