Thursday, December 4, 2008

Chicago Under Benevolent Dictatorship

TW: This Chicago parking meter deal has me chafed. I have mentioned before that more than most understand we are governed by the equivalent of benevolent dictators (POTUS relative to national security, the Fed relative to monetary policy etc.). Certainly Chicago is governed by a benevolent dictator as epitomized by this deal. I have also mentioned benevolent dictators while anti-democratic are neither new to the US nor necessarily bad.

But if you have a dictator you better be damn sure to get one that knows what they are doing (hence W. Bush has been a real problem) and they should be truly benevolent and far-sighted. Unfortunately Mayor Daley and his ilk are mortgaging the future of our great city in pursuit of short-term budgetary and hence political gain. This deal not only uses future cash flows to pay for current spending it imposes a completely regressive tax on the citizens of Chicago while cynically providing limited funding for "low-income Chicagoans".

And thanks to the ineptitude and toadiness of the alderman and media, while they shriek and moan about the increases, not one word is uttered about using your children's and grandchildren's cash flows to pay for next year's budget.

From the Chicago Tribune:
"...Anticipating big shortfalls, Daley plans to set aside as much as $675 million of the one-time parking meter windfall to help balance the city's budget [TW: plus another $100 million for "low-income people" whatever that means and I would bet you $100 the rest gets pulled into the current budgets much sooner than later]. Last year, Daley had said the meter money would be kept in reserve instead...

Several aldermen also raised concerns about being given only 72 hours to review, evaluate and approve the deal [TW: that is what dictators do, ram things through]...Volpe [budget director] said interest rates are currently very low and the city wants to act now in case those rates increase in this "volatile market." [TW: this is complete BS, almost no one expects interest rates to go up in the short-term and I assure the folks making a 75 year deal are not focused on short term anyway]. He also said the city needs the money as soon as possible [TW: which says it all, this is about addressing one year's budget by selling out the next 75]..."
http://newsblogs.chicagotribune.com/clout_st/2008/12/aldermen-debate.html

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