September 8th, 2020
FINANCES PUT CHICAGO IN “WORST FIVE SINKHOLE CITIES”
CHICAGO—Chicago’s finances are in such desperate shape that the city is among the worst five “sinkhole cities” out of 75 cities, according to an article appearing in the noted political newsletter, Wirepoints, by Mike Shedlock, a registered investment advisor for SitkaPacific Capital Management.
In fact, only New York City is worse according to Shedlock. Analysis of the 75 most populous cities in the U.S. shows that 63 of them can’t pay their bills. The total amount of unfunded debt among them is nearly $330 billion. “It is noteworthy that most of the debt is due to retired government employee pensions and health care costs,” said Jim Tobin, President of the Taxpayer Education Foundation.
On a per capita basis, Chicago Taxpayers are forced to owe $36,000 in pension and medical debt to retired government employees. That number is exceeded by the first placed New York City, who’s number is negative $64,100 per taxpayer.
New York City residents “only” owe $21,500 to the state plus $64,100 to the city for a grand total $85,600 per capita.
As Shedlock put it, referring to Chicago, “Second City No More!”