Tuesday, July 19, 2011

Chicago Mayor Ralm Emanuel Has Union Layoff Showdown But Avoids Wisconsin Style Protests And Indictments By Rachel Maddow

Rahm Emanuel sends layoff notices to city workers in union showdown

This post is NOT about the transactional issues associated with the City of Chicago and its choice to lay off over 600 workers because of a budget shortfall.

If I were to focus on that I would miss the opportunity to make a bigger point.

CHICAGO IS A HIGH TAX CITY AND YET IT STILL HAVE A BUDGET CRISIS

In the world of "Keep Your Enemies On Trial So You Don't Have To Indict Your Friends" - we always hear about how TAX CUTS have failed to produced the promised jobs.  That "Trickle Down Economies" is a farce.  Point well taken.

Rarely do we ever hear the "Dark-Matter" argument where the results of high tax environments are appraised.  Forget about the present continental collapse of Europe (except Germany).  We only need consider the state of affairs in various "Mission Accomplished Cities" to see that high-progressive taxation coupled with a cascading web of usury taxes is not a panacea either.

With 180,000 Black people having exited the city of Chicago in the past 10 years - clearly there is a problem.

Tax policy is not the grand agent for job creation that either side promotes it as.
A city with a high tax burden but without a sufficiently sustainable base of productive operations from which these taxes flow is merely going to be a city that chokes its own life away.  There are plenty of cities that are on the throws of death who raise taxes as they attempt to sustain a standard in government services that their present fiscal condition disallows.  (I am not suggesting that Chicago is near death).

In as much as government jobs are ultimately created to provide services at a level of quality that the govening authority can afford - with the threat of insolvency at hand - it is up to the leaders of that government to scale the operations back to that which they can afford.  OR actually deliver upon the agents for economic growth that will allow them to sustain their present standing.

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