The Daily Parker

Politics, Weather, Photography, and the Dog

Tyranny of the North

The Economist quotes a study finding that a quarter of American schoolchildren believe Canada is a dictatorship:

Most of the closed [Chicago Public School] district schools were in deprived areas. Nearly three-quarters of the children were black and more than 90% were poor. The report [from the Thomas Fordham Institute] concluded that “though fraught with controversy and political peril, shuttering bad schools might just be a saving grace for students who need the best education they can get.”

They do. And nationwide, many are not getting it. The National Assessment of Educational Progress, which periodically tests sample-groups of America’s children on various subjects, this week released disappointing results for history, geography and civics for 13-year-olds. Pupils showed no improvement since 2010. Most know little about history: only 1% earned an “advanced” score in that subject. Geography scores are even worse. Most did not understand time zones, and a quarter thought Canada was a dictatorship. Results have been flat since 1994.

Speaking of Chicago public services, now that Illinois actually has to follow its constitution and pay the pensions it promised, the only way to make up the deficit is (obviously) to raise taxes. Crain's takes a look at what that would mean. Despite the newspaper's general right-wing slant, even they see the logic in it:

Gov. Bruce Rauner had proposed reducing state employee retirement payments to partly close a nearly $6.2 billion deficit in fiscal 2016. But there also are big pots of money to tap, if the governor and legislators can overcome their distaste for raising taxes.

For instance, raising income tax rates 1 percentage point would bring in nearly $4 billion, eliminating two-thirds of the deficit in one fell swoop, according to one estimate. Taxing services, such as those provided by lawyers and consultants, could yield more than $900 million annually, while taxing some retirement income could produce between $1.5 billion and $2.0 billion.

“Given the state's politics and short amount of time between now and the start of the state's fiscal year, it's hard to see how some sort of temporary tax increase or tax-base broadening could be avoided,” says Carol Portman, president of the Taxpayers' Federation of Illinois, a Springfield-based fiscal policy group.

We had a 5% income tax for a short while until the legislature allowed it to lapse. Now we're back to 3%, one of the smallest in the country (of states that have income taxes). Even though it would affect me directly, I'm not only in favor of increasing state taxes to 5%, but also of adding a 1% income tax for Chicago workers (not residents) that would work the same way New York's does.

Stop trying to destroy state and city services in order to make tax cuts seem reasonable. Well-funded public services, including pensions, make cities better to live in, as Europe has demonstrated for 60 years.

Not on my airplane

South Africa Airlines will no longer transport your trophies:

Shooting a marvel of nature and shipping its carcass home seems an odd practice to many. But business is roaring. An estimated 1,000 captive lions are shot dead by mostly American and European tourists on South African ranches annually. That's nearly double the number of wild lions felled across the entire continent. Killing beasts in fenced-off, private property is easier than gunning them down on their own turf. It's also much cheaper: tourists can pay $20,000 for a captive male, compared with $75,000 for a wild one. The expansion of the “canned hunting” industry—which breeds lions by isolating mothers from their cubs to jumpstart ovulation—has lifted African trophy hunting revenues to $200m a year.

For SAA, making money from this booming trade should be as easy as shooting fish in a barrel. Tourists have few options but to load their spoils onto planes for one final journey, providing the flag-carrier with lucrative custom beneath the passenger deck as well as above it. Cargo can account for up to 10% of a passenger airline’s revenue. In an industry with average annual profit margins of 1-2% per cent, that is nothing to sniff at. Cargo is also one of the more trouble-free aspects of the business: freight doesn't complain when you push it around; and many of the fixed costs of getting a plane airborne apply regardless of how full the cargo hold happens to be. SAA, which is in financial straits, can ill-afford to turn away such easy money.

No matter how profitable and defensible, SAA has decided that trophy kill cargo is bad business.

Good on them. And maybe someday we'll give lions rifles and turn them loose on hunters. Or just skip the rifles.

More stuff on my Kindle

Fortunately, I have a couple of long flights coming up in two weeks. Unfortunately, not all of this will be relevant then:

Tonight I'm taking a short break to go to the Wait! Wait! Don't tell me taping, which is conveniently located two blocks from my office. And tomorrow I might have some time to think.

We're not Detroit. Really.

After Moody's cut our credit rating this week, people are starting to compare Chicago with Detroit:

here are five reasons, now more than ever, that suggest Chicago is akin to Detroit—or, by some measures, even worse. Or, as Illinois Republican Gov. Bruce Rauner put it last month: “Chicago is in deep, deep yogurt.”

BIG, SCARY NUMBERS: Chicago's unfunded liability from four pension funds is $20 billion and growing, hitting every city resident with an obligation of about $7,400. Detroit's, whose population of about 689,000 is roughly a quarter of Chicago's, had a retirement funding gap of $3.5 billion, meaning each resident was liable for $5,100. A January 2014 report from Morningstar Municipal Credit Research showed that among the 25 largest cities and Puerto Rico, Chicago had the highest per-capita pension liability.

Yes, it's bad, but wow. Has the author ever been to Detroit?

But yeah, it's pretty bad.

Chicago's junk bonds

It surprised no one at all that Moody's cut Chicago's credit rating to junk yesterday:

Chicago today became the first victim of the Illinois Supreme Court's ruling on pensions, as Moody's Investors Service reduced the city's credit rating to junk bond status.

In a statement that specifically cited the court's May 8 decision overturning cuts in state pensions, the credit rating agency said the city's options now “have narrowed considerably.”

The downgrade is a blow to Mayor Rahm Emanuel, who during the mayoral campaign stressed his expertise to deal with the city's financial challenges. Emanuel labeled Moody's decision “irresponsible,” but did not deny its impact.

The downgrade also is a major blow to taxpayers because the city's cost of borrowing will rise, perhaps a lot, even if other bond ratings agencies do not follow Moody's lead.

If Fitch Ratings and Standard & Poor's Financial Services follow suit, the city's financial position could spiral downward—potentially forcing the city to come up with as much as $500 million quickly.

I wonder if it's possible that, now that the city's history of corruption and shady dealing is costing us real money, perhaps things will start to improve? I mean, could voters rise up and punish the self-dealing politicians who got us here?

Ah, ha ha. Ha.

Two unrelated stories about ostriches

First, because NASA's reputation is such that climate-change deniers have difficulty refuting the agency, Republicans in Congress are trying to get NASA out of the discussion:

As has been widely reported, the House Science, Space and Technology Committee recently approved a bill that would cut at least $300 million from NASA's earth-science budget. This comes after the head of the Senate committee overseeing NASA claimed the agency should stop doing earth-science and focus only on space exploration.

Honestly, when it comes to getting the science of climate change right, who are you going to believe? A radio talk show host or NASA? The angry denialists in the comments section of this blog or NASA? The politician who says, "Well, I am not a scientist" or the scientists at NASA?

Then, closer to home, a group of residents in Chicago's Lakeview neighborhood really don't want a Whole Foods Market in their back yards:

The grocery giant's current Lakeview store, at 3300 N. Ashland Ave. opened in 1996 and is 31,500 square-foot—a speck compared to the labyrinthine, 79,000 square-foot Whole Foods located near North Avenue. That is why the company plans on opening up a 75,000 square-foot store one block away, at 3201 N. Ashland Ave. The building will feature 300 parking spots on the first floor and the basement, and a full store on the second story.

Speaking for the Melrose Street Concerned Residents, Tricey Morelli summed up the fears of the locals:

"Subconsciously, you see a big building like this and there's no windows into the building, so it makes you think, like, 'Why aren't there windows on the main floor? Are they fearful that someone's going to bash the windows? Is there going to be crime?' It kind of almost makes it look a little bit like a mean street."

This woman is speaking about a Whole Foods store in Lakeview, which has us confused. Are there roving bands of recent college graduates and moms with strollers running around, smashing windows and defacing property? We certainly can't discount the possibility.

I really don't understand what it's like going through life afraid of fantasies...

How's your week going?

It's just past 9am on Monday and already I'm reduced to this kind of blog post. Tomorrow I may have some more time to read these things:

  • Cranky Flier analyzes Malaysia Airlines' struggles.
  • Microsoft is building subsea fibre cables between the U.S. and Europe and Asia.
  • TPM explains exactly what Jade Helm 15 really is.
  • Missed Microsoft Ignite this year? Here's the Channel 9 page.
  • We're starting to set up JetBrains TeamCity to handle our continuous integration needs. Explain, however, why the user manual is all video? Guys. Seriously. I haven't got time for this.
  • So now that Illinois actually has to pay the pensions we promised to pay, what now? (Hello, 9% income tax?)

Four-hour design review session is imminent. I may post later today...or I may lock myself in my office and stare at the wall.

The Labour knives come out

Taking a moment to surf through the UK papers this morning in the aftermath of the Tory election win Thursday, I find that the usually Labour-friendly Independent has some unkind things to say about the both parties:

The next few months will see the Conservatives trying to figure out how to govern in the center, so expect lurches rightward every so often. And Labour will have to figure out how to run a campaign. But with an outright majority, it seems clear the Tories will be in power until May 2020, by which time, if history is any guide, the UK should be even more stratified and illiberal than it was at the end of Thatcher's rule.

Thanks ever so, Ed.

Well played, Ed

Instead of worrying how to put together another coalition (or even minority) government today, David Cameron has won an outright majority:

At the time of writing, with almost all 650 seats declared, the Conservatives had 325, Labour 229, the SNP 56 and the Liberal Democrats eight. In practice 323 Members of Parliament is the number needed to form a majority government.

As Cameron drove to Buckingham Palace to notify Queen Elizabeth that she had a new government from day one, rather than the chaotic search for a viable cross-party coalition of either the right or the left, [Ed] Miliband resigned as Labour leader, shocked by the scale of his rejection by the electorate. Among the night’s casualties were a raft of senior Labour figures, including his shadow chancellor Ed Balls, defeated in Leeds.

The result was a vindication of Cameron’s much-criticized decision to run a largely negative campaign, stressing the risks to Britain’s still-fragile economic recovery of a Labour government that would overspend and drive away investors through taxes aimed at the wealthy and their tax-avoiding practices.

The majority isn't large enough to guarantee passage of the Conservative agenda in full. For one thing, Conservative back-benchers will probably agitate to pull the country out of the European Union, which would be disastrous for Britain. And with the SNP's 56-vote bloc, another referendum on Scotland seems likely in two or three years.

The Economist:

Europe is especially dangerous for the Conservatives. Under pressure from Eurosceptics in his party, Mr Cameron promised to spend two years renegotiating Britain’s place in the EU before holding an in-out referendum by the end of 2017. Setting such a firm deadline was foolish: there is a real risk that, in the mid-term doldrums, British voters will sever their country’s relationship with its most important trading partner. But Mr Cameron has no option but to stick with it.

The difficulty will be calibrating Britain’s demands. Ask for too much and he will come home empty-handed. Win too little from Brussels and he will lose too many of his own party for his government to survive. He should avoid all talk of treaty change (which European governments are unlikely to countenance) and focus instead on cutting red tape, extending the single market and cracking down on welfare tourism. Then he should spin every slight achievement as a mighty victory.

Scotland poses a bigger problem. The Nationalists’ triumph was almost complete and they now have a large foothold in the parliament of a country that they wish to dismember. A second independence referendum in the next few years seems increasingly likely. English resentment of Scotland is growing, and is particularly strong among Tory backbenchers. One way out of this bind is for Mr Cameron to move more boldly towards far-reaching devolution. That might restore some Scottish faith in Westminster. And the country’s rent-seeking political culture will end only when the Scottish government has power over finances.

Like a lot of Labour-leaning people, I'm curious to see how the party recover from the loss today. The Liberal Democrats have a harder time of it, though: Nick Clegg also resigned, now that the entire Lib-Dem caucus is small enough to fit in a minivan.