-- 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 CBS article links to the Chicago Fed National Activity Index news release which has four charts dating back to 1970 to provide historical perspective on the CFNAI Index, which is especially helpful to visual learners.
http://www.chicagofed.org/~/media/publications/cfnai/2020/cfnai-may2020-pdf.pdf
Needless to say since 1970 nothing comes close to the drop in US economic activity due to this COVID-19 financial crisis.
I have a great idea: Let’s give Illinois legislators and state employees raises! We can tax the unemployment benefits of those that recently lost their jobs to pay for it! (the state withholds a 5% cut of unemployment compensation for taxes).