-- 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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I wonder about the P.E. firms gaining too much leverage on the States via the pensions. For example a lot of P.E.companies have snapped up franchises. And of course outside of the federal Franchise Rule almost all enforcement of franchises are governed by the state they originate in and franchise protection for the franchisees fall under state jurisdictions. How would you like to be a franchisee with a case against your franchisor being heard by a judge who is cognizant of the fact their pension is heavily tied to a p.E. company who in fact owns the franchise you are… Read more »