Do not think about, write about or deal with human behavior without determining the effects of incentives. It’s not their money, of course they’ll waste it.
Libertarians have been warning people for several hundred years about the perils of government. That the predictions are coming true is inevitable, but still no cause for rejoicing except as affirmation of the Universal Laws of Human Behavior. The special privileges of government workers will always outstrip the ability of taxpayers to pay for them. These privileges are always greater than anything that would be awarded in a free market. When the chickens come home to roost they never bring money with them.
Chicago Public Schools’ debt downgraded to junk status
A day after Moody’s Investor Service dropped the city of Chicago’s bond rating to junk status, it did the same for Chicago Public Schools.
Moody’s Investor Service dropped the bond ratings of Chicago Public Schools and the Chicago Park District to junk a day after it did the same for the city of Chicago.
For CPS, the downgrade doesn’t trigger any new payments to financial institutions, but the worsening of CPS’ ratings could potentially affect negotiations the district has entered into with several banks over those “swap” termination fees.
Moody’s blamed CPS’ “steadily escalating pension contributions and use of reserves to fund those contributions.”
Pensions contributions–no one saw that one coming. Yes, Maude, sarcasm. Anyone with half a brain and a straight edge could have seen it coming. Projections, doncha know. One can look at expenditures and future obligations and know when the money will run out. If you’re in government, you don’t have to care. No one suffers from being wrong.
Government Job or Respect–Which’ll It Be?
Cheerio and ttfn,
Grant Coulson, Ph.D.
Author, “Days of Songs and Mirrors: A Jacobite in the ‘45.”
Cui Bono–Cherchez les Contingencies