Chicago Reader

Wednesday, March 26, 2008

Will the real economist in the room please stand up?

Posted by Mick Dumke on Wed, Mar 26, 2008 at 6:23 PM

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“I’m not an economist,” 31st Ward alderman Ray Suarez admitted this morning to all who might still have been wondering. Suarez looked alternately lost and impatient during testimony before the City Council’s housing committee by the actual economist in the room, William Strauss of the Federal Reserve Bank of Chicago—but in fairness, he wasn’t the only one. The committee was gathered to discuss a resolution, already signed by 40 aldermen, calling on Congress to pass legislation helping home owners at risk of foreclosure; Strauss was one of several experts asked to address what many American economists and noneconomists have been claiming for months: the country is experiencing an economic downturn.

But after Strauss offered a detailed analysis of the steel industry, midwestern manufacturing, and other examples of the “sluggish” economy, our aldermen, always curious, followed up with their own wide-ranging questions about government spending, mortgage lending, the Iraq war, and just about everything else except who’s going to win the Series this year. Here’s a sampling:

Suarez: Our country is spending $90 billion toward the Iraq war. How does that affect our economy?
Strauss: Well, there’s a couple of ways to look at that. That $90 billion is clearly government spending that is supporting goods produced in the United States. But the issue about whether or not the $90 billion should be spent is something I’m not prepared to comment on.
Suarez: I just need for you to comment today on whether this $90 billion could be used to motivate other positive programs in our country.
Strauss: Well, clearly, additional spending by the government tends to create positive contributions to GDP [Gross Domestic Product]. If there’s not an offset with regards to taxation, then that will create additional federal deficits, adding to the federal debt, and that could ultimately be a drag on the economy.

Third Ward alderman Pat Dowell: Do you consider a point when maybe, considering the rising price of food and gas, this might have an impact on society in terms of creating social unrest?
Strauss: I don’t know about social unrest. I don’t think we’re at those kind of levels.

Second Ward alderman Robert Fioretti: We’ve had 27,000 casualties in the war now, and as of last year two-thirds of them were head injuries. So that means health care for all those individuals. And what would that do for our economy?
Strauss: Well, I’m not an expert on the costs of the war.

Tenth Ward alderman John Pope: You are in City Hall here. With the election coming up in November, what kind of impact do you think that will have on policy or the general activity of the country?
Strauss: I have absolutely no idea.

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Given the City Councils heinous behavior on a variety of managerial issues, how is it that they are now qualified to establish foreign policy? How about concentrating on their own jobs for a month or so, rather than trying to make points on Iraq? JBP

Posted by John Powers on March 27, 2008 at 10:12 AM | Report this comment
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These wasteful bozos are grilling someone on the financial effects of the war in Iraq on the nation? So who's going to transport the transcripts of this discussion to the Chicago archives? Dorothy Brown's chauffeur?

Posted by Hilarious on March 27, 2008 at 10:26 AM | Report this comment
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Please, the bodayouse need to wake up and smell the coffee. If you can't see a connection between our dying CTA infrastructure and the Federal Govt (usually who dispenses big funds to urban areas) going broke over Iraq, you're shortsighted at best, Bush/neocon apologists at worst. and by the way: "Strauss: Well, there’s a couple of ways to look at that. That $90 billion is clearly government spending that is supporting goods produced in the United States. But the issue about whether or not the $90 billion should be spent is something I’m not prepared to comment on." that isn't even true any more, as a massive contract just went to a European aircraft manufacturer instead of Boeing. btw, how much of those military contracts do you suppose trickle down to Chicago? I'm guessing trickle is a generous estimate.

Posted by Carter on March 27, 2008 at 11:05 AM | Report this comment
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Re: Carter And if YOU can't see the millions (billions over the years?) that the city has wasted/lost in police brutality trials, kickback contracts, etc.are enough to fix many of the ills of this city withtout federal intervention, then YOU'RE the shortsighted one. Hell, just yesterday the city agreed to pay ELEVEN MILLION to a Millennium Park contractor they fired from the project. What the hell does that waste of money have to do with the feds? The CTA is but one aspect of the city's dependency to the feds. There are a myraid of other problems that are better served by aldermen cutting local governmental waste than looking for leftovers from the Iraq war budget.

Posted by Hilarious II on March 27, 2008 at 12:34 PM | Report this comment
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Hmm.. But Federal non-military spendind has gone up faster than the rate of inflation for the entire war, including money for the O'Hare, CTA, Highways etc. The Chicago Infrastructre Consortiums are some of the most wasteful operations (outside of the war itself) in the entire Federal Budget. Shouldn't our esteemed aldermen be interested in fixing their own operational problems first? JBP

Posted by John Powers on March 27, 2008 at 1:38 PM | Report this comment
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our Shakman monitor sent out $12M in settlement checks this week where's the hearings into City hiring? any need for legislative initiatives there?

Posted by Hugh on March 27, 2008 at 2:19 PM | Report this comment
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Did I excuse our waste? Lord no. Doesn't mean that focusing on the larger crimes isn't appropriate. Millions do not equal billions. And it isn't our "dependency" on the Feds at issue, it's getting bang for the buck on our damned federal taxes. Always amazes me how few people can do basic research on the web, but here's the deal: http://www.taxfoundation.org/research/topic/26.html "Illinois taxpayers receive less federal funding per dollar of federal taxes paid compared to the average state. In 2005, Illinois citizens received approximately $0.75 in the way of federal spending per dollar of federal taxes paid. This ranks the state 45th nationally and represents a slight rise from 1995, when Illinois received $0.74 per dollar of taxes in federal spending and ranked 47th nationally. Neighboring states and the amount of federal spending they received per dollar of federal taxation paid were as follows: Wisconsin ($0.86), Iowa ($1.10), Missouri ($1.32), Kentucky ($1.51) and Indiana ($1.05)." FORTY-FIFTH NATIONALLY. You do the math and figure out who's sticking the knife deeper in our backs.

Posted by Carter on March 27, 2008 at 2:24 PM | Report this comment
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Thank you for providing those excerpts from aldermans questions, proving beyond a doubt what total and complete asshats they are.

Posted by Daniel M on March 27, 2008 at 2:55 PM | Report this comment
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So the government is wasting money that could be going to the city, thanks to the war. Great. Thanks for the update. We had no idea. Meanwhile... "The city's legal tab for outside attorneys in the four cases to date totals $6.6 million, said Jennifer Hoyle, a spokeswoman for the city's Law Department. And police wrongdoing judgments and settlements cost the city a total of about $26.4 million last year; $20.6 million in 2005; $31.3 million in 2004; and $26.7 million in 2003." http://newsblogs.chicagotribune.com/clout_st/2007/12/city-to-settle.html And that's just police misconduct settlement for the past few years. Nevermind situations like the Millennium Park settlement. I'd rather the aldermen, the people we're PAYING TO DO THE CITY'S BUSINESS stick to city business. There's enough for here for them without reaching their hands into Afghanistan looking for kickbacks. Do they need any wrought iron fencing in Kabul?

Posted by Hilarous III on March 27, 2008 at 3:27 PM | Report this comment
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Unless you are weaseling out of paying your income taxes, money squandered on war IS the City's business. I could be equally as dismissive regarding waste on the municipal level - "oh, gee, the City wastes money defending crooked./thug cops? you don't say, I never knew!" look, it all sucks, I don't disagree with you. but until we get Hizzoner out of there nothing will change, barring a serious criminal investigation initiated at the federal level.

Posted by Carter on March 27, 2008 at 4:03 PM | Report this comment
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And I agree too that it all sucks, but there is SO much that can be done here to keep BILLIONS of dollars that are already in the city IN the city, preventable things like stemming the millions lost to local government corruption, and yes, police brutality payments. As for getting a financial accounting of the war, that's why we elect congressmen and senators. Not aldermen.

Posted by Hilarious IV on March 27, 2008 at 4:26 PM | Report this comment
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"...the city has wasted/lost in police brutality trials,..." "...police wrongdoing judgments and settlements cost the city...." "...And that's just police misconduct settlement for the past few years...." "...and yes, police brutality payments...." 'Hilarious' this is not. What this is, is deceptive, dishonest, disingenuous and deliberate. Deceptive, because, contrary to what the 'city officials' prefer the general public to believe, many, if not most, of these civil suit settlements are not the result of the officers involved being actually guilty of the abuses they've been accused of, but, rather, of either the city attorney's conclusion that, if taken to trial, the plaintiff's attorneys will likely be successful in convincing 12 average citizens, ie., the jury, that the alleged abuses actually did occur or, more likely, that 12 average citizens, ie., the jury, will tend to believe that the alleged abuses did occur, whether or not the facts support said conclusion. To put it simply, the city chooses to settle many, to most, civil suits involving allegations of police misconduct, as a means of avoiding a higher than the settlement amount judgment. A few, to some, of these settlements are made for political reasons, some being pandering to the racial group the accuser belongs to and some as a means to reward certain attorneys representing the accusers. Cops dislike these settlements as much, or more, than the taxpaying citizens, since the epidemic of civil suits concerning alleged police misconduct is always a lose-lose proposition for police officers as a whole. Honest cops are tainted by the bullshit antics of a few, honest cops are impeded in doing honest police work by the false allegations brought by many, and believed by the general public because of the bullshit antics of a few, with the city settling cases, for pragmatic, political or dishonest reasons, rather than allowing the facts of each case to be brought to the light of day in a trial, with the city using these cases, both the few actual cases of police officer misconduct AND the many false accusations that result in undeserved settlements, as an excuse to leverage concessions from the police union, in their ongoing, and insincere 'negotiations' with same. To assume that every settled lawsuit involving accusations of police misconduct to be solely because the officers involved were guilty of abusing their powers and authorities is to believe that every decision made by those employed by the city is a just, honest and righteous one. This is far from the truth, as anyone observing the activities of our city officials should be able to deduce. As in all other areas of city government's activities, dishonesty is the rule, honesty the exception. If any wish to become aware of the perspectives of our sworn officers of the CPD, no better, or more frank, source can be found than at the link below: http://secondcitycop.blogspot.com/

Posted by Food for the Thoughtful on March 28, 2008 at 3:06 AM | Report this comment
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"Unless you are weaseling out of paying your income taxes, money squandered on war IS the City's business" No it is not. The City Government manages the City. The Federal Government manages foreign policy. When you can't get your garbage picked up, building permits issued, water drained from your basement, remember your aldermen are busy pretending to make foreign policy, in complete contradiction to the constitution. JBP

Posted by John Powers on March 28, 2008 at 7:55 AM | Report this comment
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Aldermen don't do all those things, John, although we all know they like to take credit for them when it's convenient. I guess specifically to the cop lawsuit issue, my opinion is that we need cops, and the nature of the job means you are always going to have problems resulting in litigation, although as pointed out above, the City seems to be addicted to just throwing money at the problem. nevertheless, being a cop is a dangerous & stressful job, and people snap. additionally, the wrong kinds of people are often attracted to the job (control/power freaks). to really help solve their/our problem, we have to legalize or decriminalize drugs, though. how many times do we hear about problems with cops in this regard? no different than the first prohibition, it forces cops to cultivate informer-type relationships, which means some drug dealers are given free license to deal so the cop can get "the bigger fish," and then you have gangbangers who become cops to protect their organizations, cops are offered bribes, have access to the drugs in evidence rooms, etc. the big gangs can make political donations to help try and insulate themselves from the law, etc, etc. otoh, we don't need to be in Iraq. period. and don't sing me a song about how the cost of it isn't choking us, it's jacked up the cost of fuel, which all by itself has had a negative ripple effect on the economy (or John, perhaps you'd like to return to your argument earlier this year about how inflation is in check and food and other necessities aren't going up). now, you want to talk City waste and corruption, let's keep looking at the boondoggles surrounding Millenium Park. what the hell is this: http://www.chicagorealestatedaily.com/cgi-bin/news.pl?id=28711 so the taxpayers get burned even when the City occasionally wises up? the City's legal staff needs to grow a spine, apparently.

Posted by Carter on March 28, 2008 at 9:38 AM | Report this comment
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reading their questions i have to assume the aldermen are asking such dumb questions in order to try and get obvious stuff into the City Council record for some reason don't aldermen read? their questions are like you might get from high school students who hadn't done their readings but felt like they had to ask a question so they look like they might have but it back-fires it's like we're paying them to attend an on-the-job mini-MBA in-service on company time

Posted by Hugh on March 28, 2008 at 12:50 PM | Report this comment
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It's a fucking shell game and it will remain a fucking shell game as long as the hucksters continue to be reelected. We, as in the citizens of this city and county, have only ourselves to blame, for the ongoing scams and schemes being engaged in by the scammers and schemers we allow to remain in office. Whether Legislative, Executive or Judicial, reelected, appointed or hired by the reelected, contracted by the reelected, or by any of a variety of other means and methods, we have chosen to be the recipients of the political version of an ass-fucking. With or without lubricate being provided. Democracy requires participation and participation requires effort. Is it any wonder that those who profit from fucking others in the ass prefer the recipients of their tender mercies to be as docile, submissive, apathetic, gullible and oblivious as the majority of citizens have proven to be? It's really pathetic, how so many can tolerate so much for so long, and fail to realize the simplest response to the presence of that penis in their bung holes is also the most effective. Just say no. HAVE NO DOUBT, VOTE INCUMBENTS OUT

Posted by Flim Flam on March 28, 2008 at 3:30 PM | Report this comment
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Carter, Inflation was 0% in February. And the Aldermen had nothing to do with that either. JBP

Posted by John Powers on March 28, 2008 at 4:04 PM | Report this comment
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For you to consider as you wish: (from the comments section of the SCC blog) "Anonymous said.... '.....taxes somewhere need to be increased. 3/21/2008 11:22:00 PM' No, they don't. What needs to be done is to reduce wasteful and criminal misuse of our tax dollars. What needs to be done is to remove the crooked thieves from the positions of authority that they use to fill their pockets with our hard earned dollars. What needs to be done is for the approximately 50% of our fellow citizens who haven't bothered to register to vote to get their asses registered and to vote in every election. What needs to be done is for the approximately 50% of our fellow citizens who are registered to vote, but who don't bother to vote, to get off their asses and vote in every election. When the approximately 75% of those citizens who have, so far, not registered to vote or, being registered to vote, don't bother to vote, actually participate in the democratic process, then we'll see how long the tax crazy thieves will remain empowered to pick our pockets. There are more than enough potential voters to rid ourselves of the meager minority that are abusing the trust and the authority granted them by the majority's failure to participate. If you don't even attempt to stop the picking of your pockets, who do you have to blame for those pockets being picked? REGISTER TO VOTE VOTE IN EVERY ELECTION HAVE NO DOUBT, VOTE INCUMBENTS OUT 3/22/2008 11:20:00 AM" and "Anonymous said.... 'It would be nice if the tax revenue generated from a new mega store would go to the neighborhood that welcomes it. It all goes to a big pot in the city and where does it go to???? Maybe zip code dispersment of tax revenue from all new development. Who decides where it goes to? Aldercreatures, Local Redevelopment Corps, a citizens group within the zip code? Better school funding and buildings,streets, extra patrol officers and parks. Give us the control of funds and where it is spent and I think neighborhoods could regenerate themselves. 3/22/2008 09:48:00 AM' Now, that would defeat the purpose which those in power have used the tax system for. Check out Ben Joravsky's many articles on TIF's at: http://www.chicagoreader.com/tifarchive/ 3/22/2008 07:28:00 PM" and "Anonymous said... 'Is your point that it is okay to elect a guy with no experience because there is the hope that he would use that lack of experience to hire the right people to tell him what to do? 3/18/2008 12:09:00 AM' So, who are your examples of people elected to office who are capable, in and of themselves? Richard M. Daley? Todd Stroger? Lisa Madigan? Dorothy Brown? Ed Burke? Bernie Stone? Bill 'da hog' Beavers? The list is practically endless. Who ever gets elected/reelected in this city, county and state who IS qualified to 'get the job done'? With 'get the job done' meaning something other than picking the pockets of the taxpayers and/or doing shit that so totally fucks up what the citizens really need left un-fucked up? Review practically every aspect of government, on the city, county and state levels, and see what percentage of activities are actually helpful to the citizens, actually worth the tax dollars being expended. Competent, honest and intelligent leaders, are not the rule, but the exception. And why is this so? Perhaps because people listen to the panderers touting against changes being made, changes in the people elected to governments, changes to the people employed by governments and changes to the people contracting with governments. The electorate behaves as if it is an abused child, fearful of angering their abusers by uttering the slightest objection to the abuse. Is this the fate of Democracy, to end with a wimper? 3/24/2008 05:43:00 PM" and "Anonymous said.... 'scc is saying 'stop already' said: 3/20/2008 08:38:00 PM and 3/21/2008 10:37:00 PM: No more questions! Darn, I was looking forward to another round of silliness and sarcasm at the expense of your all-encompassing ego. 'Judge Not, Least Ye Be Judged' Whoa! That bolt of lightning came outta knowwear. Wasn't expecting that one, comrade Yoda. Uncle! I give up! Can I still praise the God of our choice while you stand in line with me at the regulated and taxed gambling, prostitution and open air controlled substance market in your next door neighbor's garage? You can still hold my hand or some other appendage...Thanks! 3/22/2008 10:54:00 AM' As the generous owners of this site have seen fit to allow this little exchange of opinions, (both a surprising occurrence and a not so surprising occurrence), they can end the exchange whenever they choose to. I presume they are as amused at the sequence of comments as any have been, thus the allowance of same. On the off chance that this comment may make it to the board, I'll try to simplify the concept, just for you, to wit: 1. The three vices have been with humanity for as long as there have been human beings. 2. The desires of one grouping of human beings to impose their perspectives upon another grouping of human beings, for the presumed purpose of 'improving' or 'correcting' the chosen behaviors of said other grouping of human beings, has also been around for a long, long time. 3. The vehicle used by the self-styled righteous has typically been the claiming of religious or moral superiority, said claims being, in part, supported by truth and reality and, in part, by basic self interest. 4. If we accept, as fact, that the three vices are, indeed, vices, as in behaviors less helpful/more harmful to society as a whole, then the problem requiring solution can be stated as 'what actions will be the most effective and efficient at removing the harmful effects of these vices from impacting the general public'. 5. The proposals which have been so graciously allowed to be discussed will not result in causing anyone harm, other than those currently profiting from the illegality of the three vices, those who choose to use their freedom to over-indulge in the three vices and those who choose to be employed as the providers of said vices AND find that their own, personal experience at doing so is not as much to their liking as first imagined. 6. The immediate effects of the physical/geographical segregation of the providers of 'recreational' substances, gambling and prostitution, through legalization and zoning, are obviously beneficial to the residents of those communities currently suffering under the effects of the illegality of same. 7. The elimination of the misuse of law enforcement resources, currently acting as agents of an artificial price support system maintaining the profits of those engaged in all the aspects of the providing of the three vices to those consumers desiring to purchase same, will have the immediate effect of providing a greater number of law enforcement officers to address the commission of the natural crimes, as in acts of violence and the various forms of theft. 7. Further, the reductions in the costs of purchasing 'recreational' substances, currently inflated far above their actual costs to produce, will remove a certain portion of the motivation driving the commission of crimes of theft, with or without violence involved. 8. Off duty, ex or retired law enforcement officers, as well as those individuals with military experience, will be in demand as security personnel, for the geographically segregated vice providers' facilities, and welcomed by those consumers whose only desire is to satisfy their desires to enjoy indulging in any or all of the three vices, relatively free from the dangers and risks now prevalent under the current 'three vices are illegal' system. 9. The taxing and regulating of the three vices will be the definition of 'to play you've got to pay', rather than the current definition relevant to political corruptions, and, I suspect, an extremely lucrative to the taxpaying public arrangement. 10. Finally, the truly effective, (at discouraging indulgence in activities defined as vices), forces, those being social, economic/employment, insurances and internal family pressures, will now be the deciding factors in an individual determining what is more important, indulging in the pleasures of vice experiences or enjoying the pleasures of a loving family, respectful friends and associates and social/community approval. For what it's worth, I thank the owners of this site for their generosity and their patience, whatever they choose to do with this humble submission. 3/22/2008 08:29:00 PM" And people think that all cops have is balls, but no brains......

Posted by re Carter on March 28, 2008 at 4:08 PM | Report this comment
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The only comment that makes any sense is - if you wanna bytch, run for office. If not, shaddup.

Posted by Blah flim flam on March 28, 2008 at 5:22 PM | Report this comment
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Probably no need for the press, if your only alternative is to run for office. Oh well, the 1st Amendment was a grand experiment. JBP

Posted by John Powers on March 28, 2008 at 7:59 PM | Report this comment
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No, "The only comment that makes any sense is" - HAVE NO DOUBT, VOTE INCUMBENTS OUT. The citizens need not 'run for office', they need only RUN INCUMBENTS OUT OF OFFICE. Should the people heed the call to VOTE OUT INCUMBENTS, in due course of time, enough honest citizens will be encouraged to run for elected offices. So, eventually, you will get your wish. In the mean time, shut your pie hole, your shit stained brains are leaking out.

Posted by Actually on March 29, 2008 at 3:28 AM | Report this comment

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