Saturday, April 05, 2014

We Need a New Eliot Ness

to combat corruption in Chicago.

No, we don't have Prohibition anymore, and we don't have Al Capone to worry about. However, we still have gangsterism, only this time it is apparently sanctioned and promoted by politicians.

Rahm Emanuel is a crook, pure and simple.

Why hasn't he been arrested and thrown in jail?

We aren’t told that the pension shortfalls in many US states and cities were created because those same states and cities did not make their required pension contributions over many years. And perhaps even more shockingly, we aren’t being told that, while states and cities pretend they have no money to deal with public sector pensions, many are paying giant taxpayer subsidies to corporations — often far larger than the pension shortfalls.

Chicago is the iconic example of all of these trends. A new report being released this morning shows that the supposedly budget-strapped Windy City - which for years has not made its full pension payments – actually has mountains of cash sitting in a slush fund controlled by Mayor Rahm Emanuel. Indeed, as the report documents, the slush fund now receives more money each year than it would cost to adequately finance Chicago’s pension funds. Yet, Emanuel is refusing to use the cash from that slush fund to shore up the pensions. Instead, his new pension “reform” proposal cuts pension benefits, requires higher contributions from public employees and raises property taxes in the name of fiscal responsibility. Yet, the same “reform” proposal will actually quietly increase his already bloated slush fund.

Apparently this corruption has been reported on for years, but nobody has done a damned thing about it.

Where are the lawsuits from public employees?

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