Posts Tagged ‘john ruberry’

High inflation will make Illinois’ pension crisis less severe

Posted: March 14, 2021 by John Ruberry in economy, News/opinion, politics
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By John Ruberry

Will high inflation offer benefits? In Illinois and other states burdened by woefully underfunded pension plans, it just might.

Boss Michael Madigan, the man behind Illinois’ financial debacle, is finally gone. Hard work by the Illinois Policy Institute, some Republicans, local radio hosts, and yes, bloggers, made the Madigan name toxic. The tipping point against the longtime chairman of the Illinois Democratic Party and the speaker of the state House for all but two years since 1983, was a disappointing 2020 general election. He’s now enjoying a comfortable retirement.

How comfortable? Madigan, 78, contributed just $350,000 to his retirement, an amount he’ll collect as a state pensioner in just three years, according to the Illinois Policy Institute. Over the next 17 years, of course if he lives that long, the Chicagoan will collect $2.9 million from his pension. Not that Madigan is poor. Presumably he’s made a lot of money from his law firm, Madigan & Getzendanner, which specializes in property tax appeals. How much money? We’ll never know because Madigan has never released his income tax returns. 

In 1989, Governor James Thompson, a Republican, signed into law a bill that gave Illinois retirees a three-percent annual cost-of-living increase raise in their pensions. Which means after twenty years their pensions double. Madigan was the House speaker when the pension COLA bill passed through the General Assembly. 

Over thirty years later Illinois’ pension plans are among the worst-funded among the 50 states.

Short of default–pension benefits are protected by the state constitution–or a federal bailout, there is no way out for Illinois in regards to these obligations. It’s that bad.

But then there is inflation. Joe Biden’s stimulus package, most of which is not related to COVID-19, has many economists, including Lawrence Summers, Treasury secretary under Bill Clinton, worrying about higher inflation. A basic explanation of how high inflation occurs is too much cash chasing too few goods. And Biden’s stimulus is more than double that of Barack Obama’s stimulus of 2009.

Here’s what Forbes’ Elizabeth Bauer said two years ago about inflation and pensions:

If the United States were to hit a period of high inflation rates, sustained over a long period of time, these liabilities would shrink considerably — and I’m not even speaking, snarky photo aside [the article contains a photograph of a Zimbabwean $100 trillion bill], of hyperinflation. Based on my calculations (and yes, these are real calculations, using real data for this plan collected for another project, not merely back-of-the-envelope estimates, however unlikely the very even numbers make it appear), an inflation rate of 10%, and assumptions for interest rate/asset return rate and salary increases over time which reflect the same net-of-inflation rates as at present, would halve the pension liabilities of the Illinois Teachers’ Retirement System.

Crisis solved? Kinda sorta. Public pension debt in Illinois will be less of a financial burden if 1970s-type inflation returns. And of course it’s easy to chuckle about the over 100,000 retirees who last year were collecting over $100,000 annually in their pensions, unless you are a member of this fortunate caste.

But what about the retirees collecting half of that–after years of seeing large chunks of every paycheck deducted for retirement? They’ll lose too.

When I was in college an economics professor explained to me and my classmates that inflation is a zero-sum game; he used the example of a five-person poker game. When the first cards are dealt there is, let’s say, $500 placed in chips, $100 per-player. When the final hands are played there is still $500. Some leave the table richer, others poorer. 

High inflation–and hyper inflation–will reward some, which is why, for my largely self-funded 401(k) plan, I recently moved some of my funds into real estate. Let’s hope I made the right decision.

Among hypothetical inflationary losers will be Illinois pensioners, and presumably other public-penioners, unless their plans are tied to the annual rate of inflation. 

Of course don’t expect the public-sector union bosses to quietly accept their fate if inflation deals them, excuse me for not letting go of the poker example, a bad hand. Among the lessons learned from the COVID-19 lockown is that teachers unions are very powerful and they have the ears of Democratic politicians, despite what the science says about the virus and how it spreads among younger people.

John Ruberry regularly blogs at Marathon Pundit.

Review: Season One of Tribes of Europa

Posted: March 7, 2021 by John Ruberry in culture, media
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By John Ruberry

I guess I’m in an arts and culture mood of late so I’m reviewing my latest Netflix binge-watching adventure, Tribes of Europa, a six-episode series about a dystopian Europe centered on the former Germany in 2074. 

In December of 2029 the world’s power-grid fails–the cause of which is never explained, but it could be because of a cyberwar gone too far, along the lines of the biological warfare that precedes the Charlton Heston classic, The Omega Man.

Europe has devolved well past the European Union or even the nation-states that the borders of which–for the most part–have been resilient since the end of World War II. Microstate tribes have replaced the old order. One of those tribes is the Origines (rhymes with aborigines), a peaceful group of several dozen hunter-gatherers, wearing, presumably, scavenged clothes from before society’s collapse. Their community is destroyed after a B-1 type aircraft, belonging to the technologically advanced Atlantians, crashes near their village.

Three young Origine siblings, Liv (Henriette Confurius), Elja (David Ali Rashed), and Kiano (Emilio Sakraya), along with their father Jakob (Benjamin Sadler), are forced to scatter, the siblings carve three storylines, much like what the children of Ned Stark did in Game of Thrones. Yes, this show is derivative. Much of the mood and tone recalls another German series, the time-travel show Dark. The producers of that series also are behind this one. And there is a bit of the Star Wars franchise in Tribes of Europa. Moses (Oliver Masucci) is a fast-talking salvage merchant who is constantly trying to keep one step ahead of a powerful lender. Who does that remind you of? Moses takes Elja under his wing. Masucci is a gifted actor, he portyayed the brooding Ulrich in Dark, a cruel but ultimately tragic character, as well as Hitler in the comedy Look Who’s Back. 

Moses is only interested, at least initially, in Elja, the youngest of the Origine siblings, because he found an Atlantian cube, which, must like the Ring of Power in the Lord of the Rings, is sought after by other tribes, particularly the Crows. And in the early episodes, like the Ring, we are unsure of exactly what powers the cube possesses. As for the Crows, they are barbarians who party in discos and participate in gladiator duels.

Yes, there is a bit of The Hunger Games in Tribes of Europa.

Liv falls in the the Crimson Army, which is led by General Cameron (James Faulkner). He’s the actor who portayed the stern Randyll Tarly in Game of Thrones. One of the Crimson Army’s goals is to seize the former Berlin, Brahtok, the Crow capital, where Kiano and Jakob are being held.

Cameron dreams of bringing back the old Europe. Liv asks the general, “Do you really think you can pull it off, unite the continent?” Cameron replies, “The European idea will never die.” According to numerous media sources the idea for Tribes of Europa came to show creator Philip Koch after the Brexit vote in 2016.

The German in Tribes of Europa is dubbed for Netflix. But in a key revelation, English is still the lingua franca in post-collapse Europe.

There are just six episodes in the first season and as this one ends with three cliffhangers, I imagine a second season of Tribes of Europa is planned. If there is I’ll tune in.

Netlix rates Tribes of Europa as TV-MA for graphic violence, foul language, nudity, and very uncomfortable sexual situations. 

John Ruberry regularly blogs at Marathon Pundit.

Well-deserved pushback against Chicago Monuments Project underway

Posted: February 28, 2021 by John Ruberry in culture, media, News/opinion, politics, Uncomfortable Truths
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Abraham Lincoln: The Head of State, designed by Augustus Saint-Gaudens. It is one of Chicago monuments “under review.”

By John Ruberry 

Last week in my DTG post I wrote about the Chicago Monuments Project, Mayor Lori Lightfoot’s response to last summer’s riot surrounding the Christopher Columbus statue in Grant Park south of downtown.

The committee for the project earlier this month identified 41 monuments, mostly statues but also plaques, reliefs, and one painting. Five of the monuments are statues of Abraham Lincoln. Yes, that guy, the one who led the Union during the Civil War, which led to ending slavery in America. Illinois is the Land of Lincoln, that slogan has been emblazoned on every Illinois license plate for decades. His face is on all standard Illinois license plates. On every Illinois driver’s license and state ID card is Lincoln’s countenance–and automobile titles too.

Other monuments “under review” by the project include statues of Benjamin Franklin, George Washington, Leif Erikson, Ulysses S. Grant, William McKinley, several pieces honoring Father Jacques Marquette and Louis Jolliet, and works featuring anonymous Native Americans. 

But don’t worry! Really! In a Chicago Sun-Times op-ed published last week–on Washington’s birthday–three of the project’s members assured us:

Various accounts, especially on social media, have inaccurately described this project as an effort to tear it all down. This could not be further from the truth. It is a discussion.

I don’t believe them. The “discussion,” in my opinion, is a first step to, yes, “tear it all down.” Liberals work by way of incrementalism. Many left-wing politicians, probably most, want to ban private ownership of guns. They can’t express that sentiment because of the predictable outrage–and it could mean that they’ll be voted out of office. So they start with the easier targets, such as bans on semi-automatic rifles. If they succeed they’ll move on to other firearms, ending with the banning the type of handgun Mrs. Marathon Pundit purchased this year.

So the Chicago Monuments Project is beginning with “a discussion.” Without pushback that discussion very well may devolve into moving statues in the wee hours, which is what happened to two Christopher Columbus statues, including the one at the center of the riot, into storage. Both of those statues of the Italian Navigator are on the project’s “under review” status. 

It’s not just social media users and conservative news sources that have objected to the Chicago Monuments Project. In a Chicago Tribune op-ed, Lincoln biographers Sidney Blumenthal and Harold Holzer wrote, “The Orwellian idea of removing Lincoln from Chicago would be as vain as an attempt to erase the history of Chicago itself.”

The editoral board of the Chicago Tribune–paid subscription required–favors keeping the Lincoln stautes.

Lori Lightfoot even weighed in, “But let’s be clear, we’re in the Land of Lincoln, and that’s not going to change.”

But I’d like to explain to you that the other monuments are also worth keeping. Benjamin Franklin owned two slaves but he freed them and he later became an abolititionist. Ulysses S. Grant, when he was under tremendous financial hardship, freed the only slave he owned. Grant of course was the commander of all Union armies in the Civil War. George Washington’s slaves were freed after the death of Martha Washington. Yes, Washington is the Father of our Nation.

Other than being white, I can’t astertain why Marquette and Jolliet, or Leif Erikson, are “under review” in Chicago.

The source of the rage against Lincoln likely comes from his approving the hanging of 38 Dakota warriors in 1862. But Abe commuted 264 Dakota War executions. There were atrocities in that conflict committed by both sides. Here’s what a Norwegian immigrant described in a letter at that time, courtesy of the Minnesota Historical Society:

The Indians have begun attacking the farmers. They have already killed a great many people, and many are mutilated in the cruelest manner. Tomahawks and knives have already claimed many victims. Children, less able to defend themselves, are usually burned alive or hanged in the trees, and destruction moves from house to house.

If the Chicago Monuments Project is about education, then it probably means that Lightfoot sorely needs one. “In time, our team will determine there are no monuments to African Americans in this city,” Lightfoot said last summer while announcing what has become the Chicago Monuments Project. “There are no monuments to women. There are no monuments that reflect the contributions of people in the city of Chicago who contributed to the greatness of this city.”

But in her namesake park on the South Side stands a Gwendolyn Brooks statue. Brooks was the first African-American to serve as Illinois’ Poet Laureate. A couple miles north of that statue is the beautiful Victory Monument, which honors a World War I African American regiment, and a bit north of that one is the Monument to the Great Northern Migration. I believe each of these are on city of Chicago or Chicago Park District property.

Does Chicago need more monuments featuring women and minorities? Absolutely. It can also benefit with a Ronald Reagan statue. The Gipper is the only president who was born in Illinois and the first to live in Chicago, although the apartment where he lived as a child was razed by the University of Chicago in 2013.

Click here to view the monuments in question. To express your comments about the Chicago Monuments Project please click here. Please be courteous. And if you Tweet this blog post–please do!–use the #ChicagoMonuments hashtag.

Make your voice heard. They’ve begun to listen.

John Ruberry regularly blogs at Marathon Pundit.


Lincoln statues under attack in the largest city in the Land of Lincoln

Posted: February 21, 2021 by John Ruberry in culture, News/opinion, politics
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Lincoln: The Man in 2008

By John Ruberry

On Wednesday, in response to the summer riot in Chicago that nearly toppled a Christopher Columbus statue in Grant Park last month–it and another Columbus statue have been since placed in storage–Mayor Lori Lightfoot’s Chicago Monument Project revealed 41 monuments that “have been identified for public discussion.” 

The project’s web site cautions, in bold print no less, “No decisions have been made about the following monuments.”

Yeah, right. BS! Imagine that you work at a company where the annual reviews are conducted each December. But in June you are informed that you’ll soon have a mid-year review but then are told, “Don’t worry, nothing is wrong.” At that point a wise person will begin the process of résumé updating. 

The statues, reliefs, and plaques include monuments honoring four presidents, several memorials recalling the first Europeans to visit Chicago, Louis Jolliet and Father Jacques Marquette, as well as generals, a Chief Justice of the Supreme Court, and many public art pieces with Native American themes. And yes of course those two Columbus statues. Oh, if you are one of those people who believe Leif Ericsson was the real European discoverer of America don’t be smug. He’s on Lightfoot commission’s list too.

This not a list of shame. It’s a tragic shame that there is such a list.

Five of the 41 monuments are Abraham Lincoln statues–and there are five Lincoln statues in Chicago. Hmm. Widely considered by liberals and conservatives as the greatest American president, the Great Emancipator’s presence in Illinois is profound and inescapable. “Land of Lincoln” is emblazoned on every Illinois license plate as is Honest Abe’s visage. 

I live on Lincoln Avenue in a Chicago suburb–that street winds its way south into Chicago and Lincoln Park, where you’ll encounter what Andrew Ferguson in his book Land of Lincoln: Adventures in Abe’s America says is “what is generally thought to be the greatest Lincoln statue of the nineteenth century, a towering figure by Augustus Saint-Gaudens.” That makes this statue, generally referred to as Lincoln Standing although its formal name is Lincoln: The Man, a masterpiece. Yep, a masterpiece. So much so that it has been recast several times, and those Lincoln: The Man reproductions can be found in Parque Lincoln in Mexico City, Parliament Square in London, Forest Lawn Cemetery–Hollywood Hills, and the Lincoln Tomb in Springfield. Earlier this month Little Marathon Pundit and I visited the Detroit Institute of Arts, where we found one of the many miniatures of Lincoln: The Man. 

Of course back in Chicago the original artistic triumph is “under public discussion.” In Grant Park sits another targeted Saint-Gaudens work, Abraham Lincoln: Head of State.

Also troubling is the aforementioned Marquette and Jolliet memorials on this list. Jolliet, while crossing the Chicago Portage in what is now southwestern suburban Cook County, noted that it would be an excellent location for a canal, one that would connect the watersheds of the Great Lakes and the Mississippi River. Lincoln, while a member of the Illinois legislature, was a proponent of the Illinois-Michigan Canal, which opened 17 decades after the Marquette-Jolliet expedition. While that canal very well may have been built without either men, if it hadn’t, Chicago may have ended up like many other small cities on Lake Michigan, like Sheboygan, Wisconin. (Oh, I’ve been there–it’s a lovely place by the way.)

George Washington has two “nominations” from the Chicago Monuments Project, including his horseback statue in his namesake park. McKinley Park’s statue of William McKinley is in peril too. Does that mean their park names will be next? While Grant Park doesn’t have a Ulysses S. Grant statue–Lincoln Park does. He has a nomination too, as do his fellow union generals Phil Sheridan, on Sheridan Road no less, and John Logan, whose statue stands in Grant Park.  

Lori Lightfoot is a failed mayor in a city that is in clear decline. Failed mayor? She’s up for reelection in a little more than two years and already there is speculation as to who her opponents will be. Since I declared Chicago a city in decline last summer its retail cash cow, North Michigan Avenue, has been hit by the announment of two closings, a massive Gap store and Macy’s at Water Tower Place. Chicago’s streets are potholed disasters, there are omnipresent red-light cameras to contend with, the murder rate is soaring, as are the number of car jackings. Taxes are oppresive, and its financial millstone, the worst-funded municipal pension progam in the nation, has never been properly addressed. Oh, this appears to be a little thing but graffiti is no longer routinely cleaned up along Chicago’s expressways. The proliferation of kudzu-like graffiti foreshadowed New York City’s descent in the 1970s.

Instead Lightfoot zooms in on statues and monuments to pander to her leftist base. 

The ultimate responsibility for this real-life dystopia of course goes to Chicago’s misguided voters. What was it that H.L Mencken said of democracy? Ah yes, here it is, “Democracy is the theory that the common people know what they want and deserve to get it good and hard.”

Chicago voters are a special kind of common people it seems

That being said there has been surprisingly little anger here in the Chicago area about these possible monument removals, as coverage has been modest and a major snowstorm earlier last week, on top of another one, had people focused on more immediate needs. 

But that needs to change. Click here on the Chicago Monuments Project web site to offer your thoughts. As always, please be polite–but be firm too. The form asks for a ZIP code. A Chicago one will make you more acceptable to those reading the replies; choose any 606 ZIP code between 60601 and 60661. Just saying.

John Ruberry regularly blogs at Marathon Pundit. He has visited Lincoln’s birthplace, his Springfield home, Ford’s Theatre, and the Peterson House, where our 16th president passed away.

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