News From Obama’s Home State

[WestVirginiaRebel]

American Interest:

Three states form the base of Democratic political power in the United States: California, New York and Illinois. All three states are locked in an accelerating economic, demographic and social decline; all three hope that they can stave off looming disaster at home by exporting the policies that have ruined them to the rest of the country.

Mary Williams Walsh, a talented reporter who is doing much to sustain the luster of the New York Times brand these days, has a must-read piece on the mess that is Illinois, and it is a compelling description of the misery and ruin that well-intentioned liberals combined with aggressive public sector labor unions inflict on the poor they ostensibly want to serve.

Reporting on a bipartisan task force report on Illinois’ grotesquely mismanaged finances, Walsh tells it like it is. As Walsh summarizes the findings of the task force co-chaired by Paul Volcker and Richard Ravitch:

Illinois has the lowest credit rating of the 50 states and has America’s second-biggest public debt per capita, $9,624, including state and local borrowing. Only New York State’s debt is bigger, at $13,840 per capita. But Illinois has not been able to use much of the borrowed money to keep its roads, bridges and schools in good working order, because years of shoddy fiscal practices have taken a heavy toll, the report said.

This of course is President Obama’s home state; one wishes that he spent more time on the campaign trail describing his horror and remorse at what decades of bad government have done. Apparently, the subject holds no interest for him: no lessons to be learned here about where blue governance ultimately leads.

But there is more. As Walsh writes,

Nearly two-thirds of the Illinois state government’s $58 billion in direct debt consists of bonds the government issued to cover retirement payments for workers, including a $10 billion pension obligation bond that broke all previous records in 2003.

Yet despite all that borrowing, Illinois’ public pension system is still in tatters. In fact, its total pension shortfall is conservatively estimated at $85 billion. Recent changes that raised the retirement age for new workers and limited the pensions that future workers can earn have not reduced the existing obligations.

The task force said that further reductions in pension benefits appear inevitable, though legally difficult, because the state has promised more than it can deliver.

Illinois politicians, including the present President of the United States, have wrecked one of the country’s potentially most prosperous and dynamic states, condemned millions of poor children to substandard education, failed to maintain vital infrastructure, choked business development and growth through unsustainable tax and regulatory policies — and still failed to appease the demands of the public sector unions and fee-seeking Wall Street crony capitalists who make billions off the state’s distress.

Blue politicians speak eloquently and often sincerely about their desire to help the poor. They speak beautifully about the need for better education as a ticket to better lives. They speak intelligently about the contributions a well managed, well organized government can make to the common good.

But these beautiful sentiments have less and less to do with the actual policies they pursue. Readers of Via Meadia can see a pattern here. We have “peace movements” incapable of advancing the cause of peace; environmentalists whose political ineptitude damages the causes they most hope to serve; and we have a form of blue state liberalism that blights the lives of exactly the people it wants to help most.

American liberalism today is in an advanced stage of intellectual decline. Cynical and short sighted interests wrap themselves in the increasingly tattered mantles of sacred ideas. Liberals are right to feel that social justice matters, that the poor should have greater opportunity and that government in a democratic society cannot remain indifferent to the existence of great social evils.

But where liberals in America have the freest hand—in states like New York, California and Illinois—we see incontrovertible evidence that the policies they choose don’t have the consequences they predict. California by now should surely be an educational, environmental and social utopia. New York should be a wonder of glorious liberal governance. Illinois should be known far and wide as the state that works.

What’s interesting about the governance failures of these states is how comprehensive they are. Other than politicians, union officials and Wall Street investment banks, nobody really benefits from the choices Illinois has made. As the Volker-Ravitch report tells us, even the public sector unions, the architects of many of the state’s most destructive policies, are going to get shafted as a result of the bad policies they’ve supported. They’ve created a state that simply won’t be able to honor its promises to the workers the unions represent.

The French say that behind every great fortune lies a great crime. But it is also true to say that behind every great failure lies a great blunder. Late 20th century American liberalism is wrong about the way the world works. It doesn’t understand cause and effect very well. It cannot feed itself. Given full power it cannot design and implement policies that advance the causes it honors. Modern American liberalism can only win Pyrrhic victories, because liberals in power take steps that advance their decline.

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This is why the states should be allowed to be laboratories-people in other states can see what's failed, and avoid it.

[Valin]

@WestVirginiaRebel

 

News From Obama’s Home State

 

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[Valin]

Townhall: Dire State of Affairs in Illinois

Mike Shedlock

10/27/12

 

I just finished slogging through a 69 page PDF by the State Budget Crisis Task Force outlining the dire state of affairs in Illinois.

 

I knew in advance that pension funding is the biggest issue facing Illinois. The task force shows exactly that. Here is a summary.

 

(Snip)

 

Here is a surprising fact: Illinois has more governmental taxing agencies than any other state including California, a grand total of nearly 7,000 taxing bodies!

 

 

(Snip)