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Why Your Town Is Going Broke

Written by Gary North on January 30, 2013

Cook County’s Treasurer has created a website where citizens can find out how far in the hole their governments are. They are all so far in debt that future taxpayers will lose their homes, she says.

“In May, 2012, the collective debt reported by the local primary taxing agencies in Cook County was more than $140 billion! To put that in context, the total debt-per-household in the City of Chicago was $87,720, and $35,774 in the suburbs. Since local governments cannot print money, they rely on property taxes as their main revenue source to operate.

Homeowners might be able to give their homes to their children, but that future generation won’t be able to afford to keep them because of the property taxes, which have doubled over a 10-year period.”

Nonsense. Voters will simply tell the town councils to declare bankruptcy. The elected officials will do this.

When it’s a showdown between voters and ex-unionized pensioners, the pensioners will lose.

She never mentions this, but it’s obvious.

The union members who worked all their lives for less money in order to collect fat pensions will get stiffed.

How many votes do the unions have? Not many.

Will voters sacrifice their homes to pay off old city debts? Not a chance.

Will bondholders get stiffed? Of course. How many votes do out-of-town bondholders have locally?

The Great Default is coming. Be prepared.

Continue Reading on www.forbes.com

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6 thoughts on “Why Your Town Is Going Broke

  1. I find it unsustainable When a Government employee retires at 55 and is receiving their 95 % of their former wage than they have to hire someone else for the exact wage it's like your paying 2 people with benefits for that one job

  2. "The union members who worked all their lives for less money in order to collect fat pensions will get stiffed."

    Except that those union members are hardly working for "less money" these days.

  3. BellyButton says:

    Get rid of the Davis Bacon Act now. (prevailing Wage Law)

  4. Texas Chris says:

    I have a friend who retired from Galveston County, Texas. She retired at 55 and a half, at TWICE her government pay! But get this… Galveston County employees were offered a one-time opportunity to opt out of Social Security in return for enrolling in a privately owned and controlled retirement account. She did.

    She is a multimillionaire from a $40,000/year job she held for 35 years. Her children will each inherit almost $1 million, all five of them. Her grandchildren will not have to pay for college. What would her heirs have gotten if she had been in Social Security? A bill for her funeral.

    (Sadly, current employees of Galveston County CANNOT opt out, as she did.)

  5. "The union members who worked all their lives for less money in order to collect fat pensions will get stiffed." Since when did union members get paid LESS than the average non-union worker? They get paid MORE and the only concession the unions made to getting even more wage increases was to get UNSUSTAINABLY GENEROUS benefits packages instead. Their chickens are coming home to roost as they drive more and more businesses out of their states, and kill entire industries.

  6. I have no idea what world you live in where public service workers make less to get a fat pension. They make well more than the median income where I live plus the fat pension.