The Bankruptcy of Chicago: I told you so two years ago

Lets see, two years ago when I was talking about the need to control the Lakota levy in my home town of Liberty Township, Ohio I did a warning video shown below where I emphasized voter management to avoid the kind of diabolical situation that takes place on the macro scale in places like Detroit and Chicago. Detroit filed bankruptcy and I said in that video that Chicago was about two years away from the same fate. Of course people thought that I overstated the problem and was speaking as a right-winged pundit dramatizing the situation for political gain. Well, it’s been nearly two years and Chicago is exactly where I said it would be. Here’s the video as it was presented.

Chicago under progressive Obama friend Rahm Emanuel made a deal with the striking teacher’s union a few years back that has now caught up to the city. Municipal bonds within Chicago have been downgraded by Moody’s to a “junk” status which is a nail in the coffin leaving nowhere to run for the third largest city in America filled with progressive policies that have bankrupted it. It is a failed society and has avoided showing that failure with debt spending. America as a nation is on the same path, but the overload hasn’t quite caught up to Washington yet. In Chicago that happened a long time ago, and once the teacher’s union in Chicago had a major strike that Emanuel settled with appeasement it toppled any hope of austerity to recover years of overspending. Public employees pensions are so underfunded that the shortfall is nearly equal six times the annual budget for the entire city. It’s quadruple what it was only a decade ago which works out to $60,000 per Chicago household. Progessives within the city hoped for a bailout from the state. However Governor Bruce Rauner has refused to even consider such an action stating that Illinois has its own problems, and won’t be bailing out Chicago’s runaway public employee costs. So progressives are turning toward the hope of further tax increases and we all know what will happen next. To understand the enormity of this tragic situation watch all the videos included in this article. These problems will soon be at your doorstep as well no matter what part of the country you live in.

The responsible thing is to attack the parasitic nature of public sector workers in our hometowns in an aggressive fashion to avoid the problems that Chicago is currently facing. There is no way out for them, just as the Greeks are learning. Socialism doesn’t work and that is the means of economic mobility progressives utilize and believe in fervently. In communities where they have had their way for years, they have destroyed their economies. In the case of Chicago progressive supporters look around at the vibrant culture that is present, the nice mix of businesses, and the standard of living and believe that they have a progressive utopia. But that utopia was built with debt. It wasn’t legitimately created by value, and there was always an assumption that somebody would bail them out of their troubles because they were too big to fail. That bail out would likely come from the state or the federal government—or at least that’s what progressives believed.

Many feel that my criticisms of the teaching profession are unwarranted and mean-spirited. They assume that because children are involved that unlimited money should be spent on education. However there isn’t a single statistic that shows that all the money spent per pupil anywhere in America on government schooling makes subsequent generations better in any way at all. Public schools are cesspools of liberal driven social concerns more interested with programming children to become future progressives than actually intelligent members of American society. That leaves the entire value of the teaching profession to be categorized as a simple babysitting service for busy parents who may not be liberal, but are too busy to raise their own children and too poor to send their kids to a private school. That is the typical tax and spend voter who supports infinite school levies and teacher unions out-of-control regarding their financial expectations.

Public schools may have value as a baby sitting service, but they don’t have enough value to bankrupt a city, which is what’s happening in Chicago. The public unions in Chicago did not regulate themselves and kept asking for more until they ran out of money. When the money went dry they continued spending in a deficit mode until finally it was determined that they would never be able to recover financially and had their bond rating lowered to a junk status. Moody’s did them a favor by giving them plenty of time to right their ship in Chicago. The numbers were on the table a decade ago. I reported on it two years ago, and now it’s done. Chicago is bankrupt—they just haven’t gone through the formal procedure of it yet.

For years the rest of America who were not progressives were told that their way of life, their steadfast conviction to actually paying for things with cash on hand and saving up for things they didn’t have cash for avoiding debt like the plague, was a backward approach to social living. People like me were told that my cowboy hats and love of tradition were stuck in the past whereas cities in California, New York and specifically the city of Chicago were the way of the future. Of course I never bought it for a moment, because I knew better. The proud supporters of Chicago who advocated all the progressive lifestyles spent way too much time riding the coat tails of Michael Jordan and other athletes while running up bills for their massive progressive society that they could never pay in many lifetimes expecting everything somehow to magically work out in the end. Of course that is a path to destruction.

I live in an affluent area and know a lot of people with financial means. I understand what motivates them and what doesn’t—and higher taxes will guarantee that they leave for places where someone isn’t trying to dig into their pocketbook to steal the money they worked hard to make. My video was a warning to my school district not to follow the way of Detroit and Chicago and to stop the bleeding now before it’s too late. Sure those who want more tax payer money to fund their unrealistic wage expectations will be mad at me, but they aren’t the people who have to pay the bills. Those who control budgets are seldom ever liked and those who manage multiple resources are even less so—but they still have a job to do, and that job is seldom ever popular. But if that job of management is done correctly, people are better off than without it. Without management you get the trouble seen in Chicago. With management, bills get paid and society advances with a vibrant skyline.   Governor Rauner is taking a page out of the Scott Walker book and doing the unpopular task of controlling costs in his state. Walker broke the code with the labor unions up in Wisconsin much to the benefit of millions of people. Illinois really has no choice but to follow the example. As far as investment dollars Chicago is only an hour south of Milwaukee so if investments are to be made in the area and taxes are too high because of out-of-control spending, then those investments will go to areas where financial management of resources is occurring, instead of the bottomless pit that is currently sucking in the famous windy city voraciously day by day.

Never let it be said that I didn’t tell everybody about what was going to happen in Chicago. And I wasn’t the only one. It should also be noted that when I put something up here for analysis, no matter how crazy it might seem at the time, that eventually time will prove it correct. Also, I have an extremely long memory, and I will bring it up in the future. The Chicago tragedy hasn’t been heavily covered on the mainstream news even though it is clearly one of the biggest tragedies in America at the moment. The liberal driven media really can’t deal with the reality of one of their treasured cities failing in such an epic way. But it is, and I’m making sure that everyone knows about it, and that the evidence was fairly easy to see on the horizon. So when it comes to other things that I am saying now—please listen. I don’t say all these things for my health. Because if I feel strongly enough to put something in print, it’s because there’s something to it.

Rich Hoffman

 CLIFFHANGER RESEARCH & DEVELOPMENT

Listen to The Blaze Radio Network by CLICKING HERE.

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