Having lived and operated there for several years, I can attest to this first hand.
Pick your poison, social unrest, or...
- Thread starter Ricter
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Having lived and operated there for several years, I can attest to this first hand.
I don't think it's some big conspiracy either, but it is a failure of government at all levels. It's corruption, incompetence and outright theft. Underfunded pensions? Where did all the money go? It went to the same place the Social Security money went. They stole it. Now it's a problem. A problem for who? The taxpayer of course. It never ends and that's what behind this outrage and people not really caring what Trumps position is on anything. He gives a big F you to the establishment and that's enough for now. Something got to give.
While we're on Chicago corruption let me tell you another little scam they run. Parking signs with a hinge on them. What's the hinge for? So they can come and flip it to another sign. You thought it was okay to park there. Well, now it's not okay. They can come by and just flip them without notice or reason. I've had construction workers tell me how it goes down. Meter cops show up and so do the tow trucks. Cop starts flipping signs and writing tickets. Tows are happening simultaneously. It's all set up nice and neat like. You come out...no car. Cop is there to tell you what happened and they do it with a straight face. $160.00 for the tow. Anoher $160.00 to get your car out of the impound lot, and you get to pay the ticket too. Sweet!
It seems to me you have identified the problem and it is not uncommon. Too many non-contributors so the tax burden is shared by too small a fraction of the total population. Whenever you have a city where the number of higher wage earners is growing much less rapidly, or even shrinking, in comparison to the number of low wage earners and unemployed or welfare recipients, you have a problem. Someone has to pay for public infrastructure. Taxes go up, and this amounts to positive feedback that exacerbates the situation because it drives those who can pay taxes out of the city to lower taxed suburbs. The problems you refer to may be due to a demographic shift more than to graft, corruption, and inefficiency in government. Not sure about the Chicago area though. What to do about it? Any ideas?
I don't doubt it...Basically the system has to be iron clad, no exceptions, no deferrals, etc...The problem is that if they can postpone their annual contribution one year, then they will do it the next and so on...It should result in jail time for whomever is at the top of the food chain...I really have no issue if they cannot make the actual returns that are assumed (after all most of them are herded into fixed income which now returns next to nothing)...and in that case the beneficiaries would be forced to take a reduced payout upon retirement...
But as we have it now, the beneficiaries can rightfully claim that the politicians/administrators did not make the required contributions and that the taxpayer has to make up the shortfall (never mind that the ROI assumptions were completely off target to begin with)...It's a very clever and corrupt method to try and guarantee payments which were based on faulty assumptions to begin with.
Familiarize yourself with Cook County, Illinois...it might not be completely attributable to "graft, corruption and inefficiency", but it plays no small part...It's far too late to do anything about it, they are embedded into the system. Bankruptcy is about the best solution and a benefits system that will not promise taxpayer largesse benefits in return for votes.
Due to a demographic shift, or to rising inequality? The shrinking of the middle class?
It's interesting the Cap'n just posted this. It's all true, and yet my point about this kind of local government corruption being what the residents of Ferguson had to endure for decades was met with an elaborate rationalization that put the blame on, surprise, "those people". (No offense, gwb, that was your strategy and tactics, if nothing else, for that particular fight.)
Edit: to paraphrase (myself,
), "if your citizens are broke you can't make revenue."Yes, I do believe that the demographic shift has played a role. Government corruption and inefficiency are major factors as well. What to do about it?
Honestly I don't know what to do in cases like Chicago. I'm afraid a tipping point has been past. There's no easy fix. Raising taxes just drives out more people and business. BK,ing all of it screws many good and hard working people. City services will suffer. Lowering the tax base for business without some guaranteed assurances that those business will hire is also a non starter with me. Sounds great, but they never come through. The boardroom boyz just line their pockets. It's just a f'n mess all around.
Hence why the "extend and pretend" is about their only solution (or the only one they can all agree to)...issue more junk debt, rollover debts, prolong the pension mess (they never can develop a solution)...
it aint that funny...just imagine on the full moon each month you could turn every politician, or crooked cop or dog catcher world wide who had ever accepted a bribe (even if it was just a campaign contribution with an implied payback) into a pig, how diffferent the world would be.
At least that is my fantasy on a late night on the weekend when the market is closed and I address my vast mental energy to solving all the worlds problems.
Yes, i read the other day where they extended maturities on some debt and increased their sales tax rate for Cook county. I don't know how long they can use these kinds of maneuvers before they run out of simple options.
It looks to me like when they finally hit the wall they'll have three options.
One, start selling off gov't assets like Greece.
Two, find a judge that will rewrite or reinterpret the Illinois constitution like our Supreme Court judges do.
And of course three, which is what they all hope for. A bailout from the state or federal gov't.
It should really be fun to watch the fireworks when they get to that stage.