Chicago Is Dying

Chicago is on the road to Detroit.

That the third largest city in the United States (until relatively recently considered a well-governed municipality with a promising future) is seen as this kind of risk by the credit markets should drive the message home that America’s bluest cities and states aren’t on a sustainable path.And as the fiscal vise tightens around these governments, various political conflicts will come to the fore. The first is internal: Public sector unions, which jealously protect their generous pension guarantees, will be pitted against the overwhelmingly Democratic constituencies that disproportionately suffer from underfunded public services (like Chicago’s failing public schools). The second is external: If blue cities around the country remain unable to provide necessary services at sustainable cost levels, they will inevitably start clamoring for federal assistance. Some of that help will have to be given—but only in exchange for profound institutional reforms.

The ongoing blue model collapse is one of the most underreported, and politically consequential, stories of our time. How it will be resolved—and the contours of the political and fiscal system that will emerge in its wake—remain an open, and crucial, issue.

Well it is a problem.

So how are Illinois unions responding?

* Illinois state workers are the highest-paid state workers in the country

* AFSCME workers receive Cadillac health care benefits

* Most state workers receive free retiree health insurance

* Career state retirees on average receive $1.6 million in pension benefits

Nice work if you can get it. But it gets better.

AFSCME’s demands include new state-worker salary, health care and pension benefits. Specifically, AFSCME leaders are seeking four-year raises ranging from 11.5 to 29 percent, a 37.5-hour workweek, five weeks of vacation and enhanced health care coverage.

If this sort of thing keeps up Illinois will be going broker faster.

And that is not all. The Chicago Mercantile Exchange has shut down floor trading. From February 2015.

The decision by CME Group will end a 167-year era when it goes into effect in July. Despite bringing closure on the Wild West arm of Wall Street, where shouting matches and even physical altercations accompanied fortunes being won and lost, the move to fully electronic trading could have real implications for trading in everything from grain to gold.

CME, the world’s largest futures market, is closing the open outcry pits for futures on its NYMEX property in New York as well. The options pits on both floors, where much of the manpower and activity gravitated, will remain open for now.

The first line in the CME’s announcement Wednesday points out that open outcry had fallen to just 1 percent of the firm’s total futures volume.

Not mentioned in the article: tax collections in Chicago will be going down.


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10 responses to “Chicago Is Dying”

  1. Zendo Deb Avatar

    No Worries – the Dems will simply raise the tax rates in Chicago. (Sales tax is back above 10 percent.) It cost more than $20/hr to park your car in the Loop. etc.

    Keeping people away, and driving people and businesses out.

    Then they will raise more tax rate and more fees…

  2. […] Was there ever a Republican mayor in Chicago? Not in 100 years or so. Classical Values » Chicago Is Dying […]

  3. Man Mountain Molehill Avatar
    Man Mountain Molehill

    The Democrats work their magic on yet another American city. Chicago meet Newark, Detroit, Philadelphia, Buffalo, Cleveland, St. Louis…

  4. Man Mountain Molehill Avatar
    Man Mountain Molehill

    Some factions in Boston still love Mayor Curley. He was so popular he was re-elected from his jail cell one time.

    I want to know what happened to mayor Larry and Mayor Moe.

  5. Man Mountain Molehill Avatar
    Man Mountain Molehill

    Odd story –

    In the supermarket the other night, some random black woman distinctly said “privilege” as she passed by. No one else was nearby, so I assume she was addressing me. What would be the correct reply? “welfare”, “affirmative action” or maybe “fuck you, you stupid bitch, you have no idea how difficult my life was”

  6. captain*arizona Avatar
    captain*arizona

    It is fred hamptons dying curse!

  7. Man Mountain Molehill Avatar
    Man Mountain Molehill

    I’ll see your Fred Hampton and raise you an Emit Till.

  8. Simon Avatar

    Eric Garner.

    =================

    The proper response? “Responsibility” might work. Or “irresponsibility”.

    Or. you might try for the non sequitur. “Bathroom fetish”.

    “Hundred yard dash” ? “Tight end” ? “Loose morals” ? “Wide stance” ?

    “Deviation from the mean” – that is very ambiguous.

    Or you could call her stupid, “One standard deviation”

  9. CapitalistRoader Avatar
    CapitalistRoader

    Victim.