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Illinois Credit Rating Now Worse Than Former Communist Countries
Posted By Daniel Greenfield On January 26, 2013 @ 9:30 pm In The Point | 3 Comments
The difference is that the former Communist countries stopped being Communist, while certain parts of the United States are becoming more Communist.
S&P has downgraded Illinois’ credit rating down to A- which makes it the worst rated state in the United States. That seems about right considering what Illinois’ favorite son, Barack Hussein Obama has done to the credit rating of the United States.
Illinois now has a worse rating than Slovenia and Slovakia, it matches Poland and Botswana and is one step away from being Thailand, Kazakhstan and Italy.
The direct cause of this, as with so many overgovermented states and cities is the pension crisis caused by public sector unions.
Illinois has a $96 billion unfunded liability in its five state-employee pension funds, due to decades of shorting or skipping its pension payments. To catch up, the state must allocate nearly one-third of its general revenue annually to pensions, putting a squeeze on money for services such as education and health care.
Which leads to two inevitable responses
1. Minority “Poverty” activists and unions fighting over the available money.
2. Both of them agreeing that the solution is to tax the rich
That leads us to wonderful situations like this…
Chicago teachers have the highest average salary of any city at $76,000 a year before benefits. The average family in the city only earns $47,000 a year. Yet the teachers rejected a 16 percent salary increase over four years at a time when most families are not getting any raises or are looking for work.
Unions and poverty activists unite to raise teacher salaries and benefits, while leaving their pensions unfunded and when the crunch comes, they raise taxes, the tax base flees and look… is it a bird, is it a plane? No it’s Detroit.
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