What does that have to do with my point about gentrification? The finances of the local government are related to but not coextensive with the economic health of the surrounding region. At the end of the day, changes in the $500+ billion GDP of the Chicago metro area are going to have a much bigger impact on gentrification in Chicago than the deficits in the $3 billion Chicago city budget.
The danger is, of course, that pension obligations cause a rise in taxes that push out wealthy people and businesses, hitting GDP. That's a concern, but I think at least Chicago will fight to reneg on pension obligations before raising taxes. Rahm may be corrupt, but he's corrupt in the right direction. He sounds like a republican these days. Controlled bankruptcies may be the smartest course of action for cities like Chicago, allowing them to avoid the choice between raising taxes and cutting crucial services. The key thing to watch is whether Detroit's bankruptcy results in significantly reduced pension liabilities.
Which circles back to my point about embracing the 1%. The way to see continued improvement in your city is to keep your 1% where they are, and ideally attract new 1%. Those few condos here and there are upper middle class/rich people moving into Chicago and spending money and paying taxes. Since major U.S. cities have a dearth of middle class people (who mostly live in the suburbs), and poor people don't really pay much taxes, it's these folks that keep the show going. You can't afford to let writers like the OP push for policies that encourage these people to move out.
The danger is, of course, that pension obligations cause a rise in taxes that push out wealthy people and businesses, hitting GDP. That's a concern, but I think at least Chicago will fight to reneg on pension obligations before raising taxes. Rahm may be corrupt, but he's corrupt in the right direction. He sounds like a republican these days. Controlled bankruptcies may be the smartest course of action for cities like Chicago, allowing them to avoid the choice between raising taxes and cutting crucial services. The key thing to watch is whether Detroit's bankruptcy results in significantly reduced pension liabilities.
Which circles back to my point about embracing the 1%. The way to see continued improvement in your city is to keep your 1% where they are, and ideally attract new 1%. Those few condos here and there are upper middle class/rich people moving into Chicago and spending money and paying taxes. Since major U.S. cities have a dearth of middle class people (who mostly live in the suburbs), and poor people don't really pay much taxes, it's these folks that keep the show going. You can't afford to let writers like the OP push for policies that encourage these people to move out.