-- Connecting the dots between our economy, government and business --
Mark and Ted discuss rising inflation, why it’s happening and where we are headed in Illinois.
Check out these articles for more info on inflation:
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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fantastic dialogue piece M&T!! Comment #1–So, with inflation at 7.5% (for now) that means Illinois combined pension debt is now $430 bill + 7.5% = $462 bill, increase of +$32 bill !!! (not sure if I got my $ billions right but who can). This inflation pension debt increase coupled with automatic inflation prop tax increase, largely to pay for pensions & salaries for the gov hero class, makes jbs $1 bill temporary tax break a complete (giving trinkets to the Indians) joke. Comment #2–the way out of an inflation death spiral is economic GROWTH ( a word progressive/ fake… Read more »
Your analysis is way too superficial and essentially wrong. The unstated assumption is that literally every public sector worker woukd retire within the same four-five year time span and that each of them would have their highest earning latter years bumped up by that 7% figure, a figure generally subject to variability and not likely true for this select group of workers over the multi-year time period mentioned. You may want to go back to your spreadsheet and create a more likely outcome, assuming that is even predictable at all.
yes, a generalized statement and who knows how many $billions are involved. I was trying to make point that the OVERALL pension debt owed by tax payers increases with inflation by $10s of billions and not that individual retirees get somehow get automatic 7.5% inflation adjusted pension benefit (at least not yet, just 3% compound cola-which is ridiculous enough) which in comparison to jbs $1 billion tax cut is a chump change joke. Stop focusing on yourself, think of us poor taxpayers without gov benefits please.
I’m only focused on your shaky analysis. Give a more realistic one where short-term inflation data are not considerd permanent. It may turn iut your way, but yours is an extremist position.