Senate Majority Leader Mitch McConnell has been under fire for his suggestion that states declare bankruptcy rather than seek federal bailouts. McConnell’s view is that many states like Illinois were near bankruptcy in years before the pandemic because of irresponsible union contracts that agreed to crippling pension plans. There are good-faith reasons to question the proposal as voiced by New York Gov. Andrew Cuomo as well as reasons to advocate the bankruptcy approach, including a concern of how such declarations will impact loan money rates etc. However, the President of the Illinois Senate Don Harmon just gave McConnell a massive boost by demanding a $40,6 bailout, including a $10 billion pension bailout. I have previously criticized my home state for these contracts that were cavalierly accepted by politicians over the years with little concern for the ballooning debt.
In a column on Friday, even editorial board of the Chicago Tribune has criticized the Illinois Senate’s request for the $41.6 billion federal bailout:
“Let’s stipulate that Don Harmon, rookie president of the Illinois Senate, laid a rotten egg with his recent letter asking members of Congress to give Illinois a $40.6 billion bequest. Assorted politicians and pundits have scorned Harmon’s inclusion of a $10 billion pension bailout, as if a sudden pandemic created a pension crisis that, in fact, Harmon and his fellow Springfield lawmakers spent decades creating,.”
The Tribune editorial board added that “taxpayers across the country should not be responsible for Illinois’ financial mismanagement and particularly its unfunded pension liabilities.”
This could emerge as a blue/red state division. McConnell is not backing down. However, it is highly unlikely that the Congress would amend the law to allow such an unprecedented move toward widespread state bankruptcies. There will be some form of bailout but that does not address the underlying questions.
The media has pounced. However, there is a valid concern as raised by the Illinois demand about the use of bailouts to address waste or excessive spending before the pandemic. It is a difficult question to balance. States that have been more financially responsible do not want to subsidize states that have a long history of debt spending. Instead of discussing this issue, the media is hitting McConnell as wanting states to go bankrupt. In other words, in attacking McConnell for playing politics, many are playing politics by making McConnell (not the underlying concerns) the focus of the bailout question. There is a difficult question here in how we are going to address pre-pandemic debt while getting states back into operation. There is also a growing question about a debt that could destroy the dreams and future of an entire generation.
114 thoughts on “Illinois Democrat Gives Mitch McConnell A Needed Boost With An Obscene Bailout Demand”
You complain that states going bankrupt will negatively impact their loan rates – is if that is a bad thing.
That is exactly what bankruptcy is about. You receive some forgiveness of your debts, but you do so at the cost of future trust.
Shouldn’t future lenders be warry of states with a history of poor fiscal choices ?
If states go bankrupt and there are not consequences – then why should they ever behave responsibly ?
Just a marker but more interesting reading than all the dingbat stuff that infects the place:
Donald Trump and Xi Jinping’s battle over globalisation
“Mr Xi recognised that globalisation was not without difficulties. But, he argued, “blaming economic globalisation for the world’s problems is inconsistent with reality”. Instead, “globalisation has powered global growth and facilitated movement of goods and capital, advances in science, technology and civilisation, and interactions among people”. His vision matches that of the last US president to address the World Economic Forum.
In 2000, President Bill Clinton argued that “we have got to reaffirm unambiguously that open markets and rules-based trade are the best engine we know of to lift living standards, reduce environmental destruction and build shared prosperity”.
“Mr Trump rejects this vision: “We must protect our borders from the ravages of other countries making our products, stealing our companies and destroying our jobs. Protection will lead to great prosperity and strength.” Moreover: “We will follow two simple rules: buy American and hire American.”
– Financial Times, 2017
“China’s message to the world this year couldn’t be clearer: Choose between us and America”
– Quartz, January 25, 2018
“Chinese President Xi Jinping stands up for globalisation and free trade at Asia’s Davos”
– South China Morning Post
“China’s Xi Jinping defends globalization from the Davos stage”
– World Economic Forum
What would Rod Blagoveich do?
The CPUSA comrades are brilliant with other people’s money and letting people draw decades of benefits after a month on the job was predestined for failure.
Kim Jong Un’s reported death puts China’s preemptive “Wuhan Flu” germ warfare “First Strike” of World War III in a new light.
America may need some new allies and politics makes strange bedfellows.
“Trump, Putin issue joint commemorative statement triggering concerns from government officials”
“President Trump and Russian President Vladimir Putin issued a joint statement on Saturday commemorating the 75th anniversary of a World War II meeting of U.S. and Soviet troops at the Elbe river in 1945.
“As we work today to confront the most important challenges of the 21st century, we pay tribute to the valor and courage of all those who fought together to defeat fascism,” the statement read.
– The Hill
“[You] can run but [you] can’t hide.”
– Joe Louis
Regarding the commentary on Washington state sheriffs by Darren Smith:
Snohomish County is in western Washington and contains the sizable city of Everett, which has a navy base and an airport, Paine Field, where Boeing does much aircraft assembly.
As another off topic comment, here’s Michael Shellenberger on the latest MM documentary:
By any means necessary, we must take back our country from the power hungry Democrats. They have lied to us and they along with CCP must be held accountable.
Justice for America.
Another blow dealt to public faith in scientific models
By Miranda Devine
The random antibody testing of 3,000 people across the state of New York has delivered yet another blow to the faith we placed in the computer models that Governor Cuomo and President Trump used to shut down the economy and place all of America under virtual home detention.
The tests show 2.7 million in New York state have developed antibodies through exposure. Meaning, with 16,000 COVID-19 deaths, the state’s mortality rate is a little less than 0.6 percent. Nowhere near as lethal as the dire 3.4 percent death rate the World Health Organization was billing early last month, and these figures will keep changing as more data comes to hand.
And it wasn’t all because we are perfect practitioners of self-isolation and hand washing.
The President’s coronavirus task force took into account those mitigation measures when it used an amalgam of models to predict that between 100,000 and 240,000 Americans likely would die.
A model from the University of Washington has since revised the projected death toll to 60,000 down from an initial 162,000.
As of Friday, 51,000 Americans had lost their lives, and now the updated models are edging closer to grim reality.
Of course, every death is one too many. But what we have seen over the past two months is that computer models are unreliable when it comes to predicting the future, and the premise we agreed on to vaporize 25 million jobs exaggerated the risks.
For people who understand how models work, their imperfections are no surprise.
Coronavirus task force tsar Dr Anthony Fauci last month admitted that exaggeration was built into every computer model of diseases he’s dealt with: “They always overshoot,” he told CNN. Computer models are not crystal balls, only a useful tool. Fauci calls them a “hypothesis.” They allow you to test scenarios and provide an approximation of alternative realities. But they are no substitute for common sense and prudent judgment.
So, since the models were used as the rationale for shutting down our $23 trillion economy, we should at least understand their methodology. What were the assumptions fed into the models that led to such an overestimation of the risk? And did they include a scenario which allowed for a less drastic intervention than a total shutdown of the economy?
We know now that 64 percent of those who have died in New York were aged over 70. Of patients hospitalized with the disease, 94 percent had underlying conditions such as obesity or diabetes. Did the models include a scenario in which we focused efforts on protecting the elderly and infirm while allowing the young and healthy to keep the economy ticking?
We know now that less populated rural states have suffered less than New York, California and Michigan, so did the models consider targeted shutdowns and travel restrictions in hard-hit or dense areas, while allowing the economy to breathe in the rest of the country?
The consequences of overreach are dire. The International Monetary Fund this week warned the coronavirus has plunged the world into the worst economic crisis since the Great Depression. Famine, war and human misery are sure to follow.
As we emerge blinking in the sunlight in coming weeks to survey the smoldering remains of our economy, it’s not unreasonable to ask the question: did alarmist models persuade us to err too far on the side of caution?
The next challenge is to re-open the economy, and Cuomo reportedly wants to spend money we don’t have on consultants, McKinsey & Co, to create — you guessed it — a computer model to tell him the best way to move forward. This time lets demand to know what are the assumptions and political calculations that go into these new models before they are used to determine our future.
Or better yet, forget McKinsey, and trust the innate common sense of the American people.
From NY Post
Anonymous, most of the world has imposed quarantines. Did you think it was just the U.S..?? And even if 64% of the deaths are people over 70, that still means 36% were under 70. What’s more, a high percentage of Americans suffer obesity and other pre-conditions. Do they not count??
And finally, do you think only Republicans want to get back to work? Is this one of those stupid generalizations where Democrats prefer to sit home instead? Everyone has cabin fever!! It’s not just Republicans.
OBESITY RATES IN U.S.
These stats convey an idea of how many people are vulnerable to Covid-19.
Over 70 million adults in U.S. are obese (35 million men and 35 million women). 99 million are overweight (45 million women and 54 million men). NHANES 2016 statistics showed that about 39.6% of American adults were obese. Men had an age-adjusted rate of 37.9% and Women had an age-adjusted rate of 41.1%.
Wikipedia › wiki › Obesity_in_the_…
Obesity in the United States – Wikipedia
It would help if people understood the fundamentals of how defined benefit pensions work in the public sector.
Being from Oregon, not Illinois, I’ll use our situation as a discussing point, but I doubt it’s much different.
Yes, Oregon PERS has an “unfunded liability”. But so does Social Security. And they function more or less the same way.
The unfunded liability is a hypothetical value. *If* every single public employee in Oregon, state and local agencies, quit their job on Monday, *and* they all demanded immediate “cashing out” of their PERS accounts, then the unfunded liability matters. Otherwise, it’s just a political issue made to sound like a problem.
As with Social Security, the real problem is the disproportionate number of retirees over new employees. That’s just demographics.
I think Darren realizes there’s not enough bossa nova in these threads.
I like this! You know she was just a girlfriend IIRC, and not a real singer. At first. I think I read that on a cd thingy.
No, she was his wife. She gave live performances, so I have no clue why you fancy she was an unreal singer.
I thought I read she was just at the club when some American went down there, and “discovered” her husband. I think I have that Verve CD of her and it was in the notes. I will look it up.
OK, here it it from wiki:
Astrud Gilberto was born Astrud Evangelina Weinert, the daughter of a Brazilian mother and a German father, in the state of Bahia, Brazil. She was raised in Rio de Janeiro. She married João Gilberto in 1959 and had a son, Marcelo Gilberto. She has another son from a second marriage, Gregory Lasorsa . Later she began a relationship with her husband’s musical collaborator, American jazz saxophone player Stan Getz.. She emigrated to the United States in 1963, residing in the U.S. from that time. Astrud and João divorced in the mid-1960s.
She sang on two tracks on the influential 1963 album Getz/Gilberto featuring João Gilberto, Stan Getz, and Antônio Carlos Jobim, despite having never sung professionally before this recording. The 1964 single version of “The Girl from Ipanema”, taken from the 1963 album, omitted the Portuguese lyrics sung by João Gilberto, and established Astrud Gilberto as a Bossa Nova singer. It sold over one million copies and was awarded a gold disc. I
Illinois proves itself to lead the country in having dirty politicians time and time again
Did you say dirt. I see Anonymous the Stupid running in that direction.
Allan the Idiot, on the other hand, spends his time running in circles.
WWHO. Worlds Worst Health Organization.
One Reason Illinois Is Floundering:
Lack Of Population Growth
Illinois had ranked among America’s 5 Most Populous States since the Civil War. But since 1970 Illinois has grown by only 1.5 million. Conservatives might be quick to say that lack of growth is due to ‘corrupt politics’ and, or, labor unions.
But the truth is that since 1950 colder regions of the country have generally seen lower rates of population growth than sunnier, warmer states. This trend has been very distinct since 1970. In the past 50 years scarcely ‘any’ states in the Northeast and Midwest have seen major population growth.
Modern air conditioning systems became widely available in the postwar era. And that leap in technology encouraged mass migration to warmer states that continues to this day despite Climate Change. In fact one could argue that droughts and wildfires could make our so-called ‘sunbelt’ states less sustainable in years to come.
The Following population stats compare population changes between our most populous cold states and most populous warm states. Populations are represented in millions. Arizona is included as a comparative example.
In 1970, the population of Illinois was roughly equal to Texas. But currently Texas is almost 3 times bigger than Illinois.
In 1970 Illinois was bigger than Florida by more than 4 million. But currently Florida has almost twice as many people than Illinois.
In 1970 Arizona ranked as one our smallest states with less people than Philadelphia. Currently Arizona ranks as one one our 15 Most Populous states.
Blaming it on the weather??? ROTFLMAO!
How about the increases in the cost of living brought about by Democratic machine politics? How about insane property taxes and runaway government? How about people are just fed up with Liberal crap??? How about inner cities overrun with the b*st*rd children of single mothers? You think climate is why people are leaving Detroit, and Baltimore and Newark and Chicago???
Squeaky, again let me ask: If your estimation of Blacks is so low, why on earth do you want to stop Black women from having reproductive choices?
And let’s say for the sake of argument that you’re ‘not’ the least bit racist. Let’s say instead that you’re really a street-wise chick who knows what she’s talking about.
If you know that Blacks are so massively plagued by social ills, then you’re rigidly anti-abortion views make no sense whatsoever.
If you know that Blacks are so massively plagued by social ills, then you’re rigidly anti-abortion views make no sense whatsoever.
Even money says Paint Chips has no idea what he just admitted. He and his ilks monstrous worldview. Undesirables must not be allowed to procreate.
Even money says Olly doesn’t realize what his comment means.
Olly, show us stats to suggest those social ills don’t exist.
show us stats to suggest those social ills don’t exist.
Go get your own effing stats, you sociopath.
Olly along with being a Socialist/ Communist Paint Chips is a Fascist of the worst type.
I answered you earlier on this.
Squeeky, no you didn’t. I checked and never saw it. The truth is your views are totally contradictory. You claim that Blacks are plagued by social ills, but you see no need for Black women to have choice. In other words you’d force the poorest and most ignorant of mothers to have children they can’t provide for in dysfunctional environments.
What’s more your reasons to explain mass migrations from cold states fails to account for California’s incredible growth during the past 50 years.
Check at 2:53 PM, lazybones:
Because as lousy as they are as a group, they are still human beings. The things that make them worthless could be fixed within a few years, but I suspect that will not happen because the Democrats like their voters/cheap labor barefoot and pregnant and broke.
Plus, the gazillions of illegals who move into California are moving into a COOLER CLIMATE, dimwit.
Sqeaky, your comments ONLY make sense to people deep within the rightwing bubble. To anyone outside that bubble you read as a mean-spirited, anti-intellectual.
What part do you not understand? I think it is pretty simple.
To all the lazy, greedy, striking, thug teachers union teachers, the honorable but absurdly compensated police and firemen, the parasitic and unjustified public workers, the unconstitutional bureaucrats, the affirmative action beneficiaries and all the duped “entitlement” recipients, good luck.
Monopoly is played with monopoly money.
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