-- 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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Many of the 2 flats and multi-unit buildings are investment vehicles for working class people like my uncle, a retired Chicago cop who bought an apt building decades ago while working. Many of these landlords live in one unit and rent out the rest. Great way to build equity, but also not without its risks. New roofs, seepage, pipes bursting, ever increasing insurance rates, etc. Maybe bought a building in a poor neighborhood subject to crime. Every so often, a lousy or deadbeat tenant. It doesn’t take much to lose money. After all these years of assuming all this risk,… Read more »
If the politicians wanted to purposely drive the property values down until the properties are ruined and ultimately demolished, then they would do this. No property owner would repair or rehab, but rather let the property deteriorate until they are uninhabitable.
Not able to access WSJ but I read the Crain’s article. I work in real estate and this is an absolutely horrible idea. At this point I think we need some basic education requirements for our legislators. An economics degree would be great but I’ll settle for just passing two 100 level college courses in economics. It’s pretty obvious from this and many other things in Illinois that most legislators have no understanding of economics. People don’t realize this will also affect the value of single family residences not just the value of apartment buildings. And don’t think your real… Read more »
They are willfully indifferent to numbers and economics. Willfully.
One has to admit they know how to get elected in Illinois. That is their goal and they do it quite well. One may simply opine that these politician’s actions basically reflect the goals of the Illinois voting base and or the Illinois voting base that chooses not to vote at election time.