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The big idea behind Chicago Newsroom is that we assemble a small group of involved, knowledgeable people around the table and we yak about the week’s local news. Most often we tap journalists, but you’ll also find historians, political activists, academicians and newsmakers in the mix, too.

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CN Jan. 15, 2015

(note: we’ve included time markers, so you can go directly to that point in the video).

Fox 32 Chicago’s Mike Flannery is Fired Up.

He was in Springfield for Bruce Rauner’s inauguration on Monday. He tells us that he spent some time combing through the transition document Rauner’s team prepared, and it looks like there are some tax increases in store for service providers.

Here’s how Mike describes it:

13:00 He campaigned last year promising that he would consider and probably propose an extension of the sales tax to services. The boom in downtown Chicago has in large part been driven by these corporate headquarters – Mayor Emanuel boasts that thirty of them have relocated downtown since 2011 when ho took office – one of the things that attracts them to Chicago is the corporate headquarters ecosystem that’s downtown. The lawyers, the accountants, the human relations people, the business consultants, the merger and acquisitions experts – they’re all right there, within walking distance. And they’re also largely untaxed.

In his transition report, released last week, they talked about the kind of money that could be raised from the different categories. If the State sales tax were applied to lawyers, to attorney fees, something like $167 million dollars could be raised each year. And they listed eight or ten other services in descending order of revenue – something more than $600 million. So the question becomes, would local governments also apply their sales taxes? In downtown Chicago it’s about 9.25%. That would be a source of revenue for the Board of Ed, for the City, for the pension funds. So there’s a lot of money at stake.

18:01 I think we’re gonna get this service tax. We’re gonna get the sales tax extended…Governor Rauner has indicated that he doesn’t want to add to the big pile of unpaid bills. he wants to balance the budget. It’s a couple of billion dollars or so out of balance and next year its gonna be even worse, in the fiscal year that starts in July.

And if the lawyers and their clients will have to pay, so will a lot of other people, Flannery thinks.

19:00 I’m sympathetic to the teachers’ union argument, and the other public employees’ unions argument that it’s the pension theft bill. Quinn referred to it when he signed it as a pension reform bill. But something is coming from Rauner. He’s talked a lot about sacrifice. I think he used the word about 5 or 6 times in his inaugural address. So we’ll see.

Pat Quinn left on a sour note as he issued a slew of executive orders on his way out the door. 

10:20  There was one raising the minimum wage for the employees of state contractors to ten dollars an hour. Really? You’ve been governor for almost eight years and you did that in the last eight hours. That said, the one that really requires more discussion is the one that requires the governor of Illinois, every May 1, to disclose his or her complete income taxes. It’s been done voluntarily by, I believe, all of the governors that I’ve covered since Dan Walker. It is disgraceful that Bruce Rauner has refused to disclose his full income taxes…He’s the richest guy ever to be elected to office in Illinois – ever to be the State’s Chief Executive. He owes that to us.

That said, he’s in. He’s got tough, tough decisions to make.

We talked at length about the public hearings this week regarding  the building of an Obama Library in Jackson or Washington Park. 

3:01 The people I talk to on the south side – white, black – they’re desperate for that Obama Library. And the idea that it would go in the general area where the president worked and lived- the South Siders really want it.

And the University of Chicago, which is pushing the south-side proposal, explained why it wants the parks option.

7:30 The University says that they heard from the community -we don’t want residents displaced. The University does indeed have a ton of dough – they’ve got billions and billions in endowments. They’ve got these smart Nobel Prize winners who help bring in billions and billions of dollars. So they could have bought up any part of the neighborhood.

The University’s gotten a bad rap – In Woodlawn there have been generations of complaints about displacement there, and they don’t want to repeat that to the north of the campus.

So the parks option seemed easier for the U of C, Flannery says, because it wouldn’t displace residents. But the quietly-nagging question involves the Obamas themselves.

3:51 It appears they’re not going to be living here. I think they’ve moved on. That’s the sneaking fear everybody’s got, and it’s the old Chicago paranoia. But Bill Clinton didn’t go back to Little Rock. Didn’t go back to Hope.

Turning to the Chicago elections, can Rahm Emanuel grab the 50% + 1  vote he needs to avoid a runoff?

24:10 I don’t know. I think it’s really hanging in the balance. And I think the fact that he agreed to five debates showed that he’s feeling heat. Let’s give him credit. Rich Daley didn’t do any at all in the last elections.

24:40 To know Rahm Emanuel is not necessarily to love him, is it? They talk about Ronald Reagan having been a “Teflon politician”. And maybe Richie Daley to some degree. Nothing sticks. Somehow Rahm is a Velcro politician. Everything sticks…the idea that he’s the one – that it was Rahm in 2011 who suddenly made Chicago two different cities.

 

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CN Jan 8, 2015

 

Tom Geoghegan likes to challenge conventional thinking. His new book, Only One Thing Can Save Us, argues that America’s labor movement has to completely re-think its strategy, and that, if it doesn’t succeed, we could lose the last meaningful opportunity to rebuild America’s embattled middle class.

In his Chicago Newsroom appearance, he says that both Democrats and Republicans seem to agree that “education, education, education” is the path to a more prosperous life. Yet, he says in his book that 32% of Americans 25-64 have four-year college degrees, and that leaves the vast majority of the country in what he calls “a high school nation”. He argues that much more has to be done to lift the economy for these, the center of the American demographic

Here are a few quotes from Geoghegan, along with time posts to take you directly to that section of the discussion.

“Debt” is a major theme of your book. Why?

350 Henry Ford used to pay people five dollars a day to make the cars so they can go out and buy the cars. I analogize the situation as – today, business is paying people four dollars a day and lending then one dollar at 20% interest to do the buying. An economy that isn’t rewarding people based on their increased productivity is an economy that is going to rely on people going into debt. And even countries going into debt, including our own – trade debt. And an economy that keeps going into debt is going to have periodic shocks like 2008-9.

You say politicians always cite “education” as the panacea for getting good jobs. But in today’s labor market, there seem to be more college-educated people than the market needs. 

13:35  College graduates are working as temps. Working at high-skilled jobs. They don’t even have employers, really. They’re independent contractors. They have 98,000 dollars in college debt. And we’re not talking about Macy’s, we’re talking about big companies like Abbott Labs and so forth. Corporations have so little stake in people. They don’t even have to fire these people. People are on their own, nobody’s investing in them, and they’re going nowhere. They’re stuck. That’s what we’ve gotta change. That’s what a labor movement can change.

You use the word “disruption” a lot in the book. You especially want to disrupt the Democratic party.

19:50 We need more disruption in the country. You saw that in the fast-food thing, which shot up minimum wage to the top of the political agenda. The Chicago Teachers Union strike. And it’s not necessary always to win. You can win by losing. Martin Luther King knew that. Go out there and lose. Force the national political parties, and especially the Democratic party, to declare itself.

You argue that organized labor should move toward a “members-only representation model”, which means representing only those people in a plant who want to be in the  union. How would that work?

23:40 I don’t mean to be scathing here, or condescending. But let me be condescending and scathing. Most people are sheep. It’s not that they’re against (unions), it’s just that – I’ve got my life to live, I’ve got other things to do, I can’t do this. I wish you guys well, but count me out. That’s where most of the country is. That’s why you’ve got to create a kind of labor model where you can take advantage of the people who are militant. Because I can tell you one thing, as a union-side labor lawyer. All this talk about the United States and their workers’ disengagement – well, most are, but a lot of them aren’t. We have a lot of terrific working people who have the sense of others, who want some meaning in their lives – they’re out there, and they’re all over the place. They’re not fifty-percent-plus-one, but they’re 20%, they’re 30%, let’s take advantage of their energies.

Isn’t the central problem that there simply aren’t enough jobs to go around? We don’t make much any more in the US, and what we do make is largely made by machines in vast, automated factories

26:58 Technology is dynamic. It’s always dynamic, and there’s always technology that creates jobs. Let me put it this way. We are skewed toward technology that doesn’t employ people. Because we don’t like to employ people. We have maybe 12% of our workforce in manufacturing. Germany has 25% of their workforce in manufacturing. They’re much more technologically innovative than we are. In the US, the whole impetus is towards that kind of technology that doesn’t employ people.  We’re skewed away from the kind of technology that requires skilled people, with innovation coming up from working people at the bottom.

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CN December 18, 2014

Is the Chicago municipal election really under way? Well, yes, but not in the most visible way.  At this point, it’s “mostly objections and positioning,” say Jimm Dispensa and Mike Fourcher of Aldertrack, our guests this week.

Aldertrack is a comprehensive data-base of facts and figures about the election, constantly updated. It’s a must-read for Chicago political junkies.

There are a few wards where the incumbents are facing no opposition, some others where the battles are already getting fierce, and seven wards with no incumbents – and huge numbers of candidates.

Election day is two months away, but Jimm and Mike explain how the objection process, at least in Chicago, is often as interesting as the election itself. And it keeps a lot of lawyers very busy.

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CN December 11, 2014

 

There was a stark manifestation of the growing divide between haves and have-nots in Chicago recently when the CHA revealed the numbers of people who’d applied for its most-recent round of wait-list applications.

“There were 282,000 or so households who signed up for the CHA’s wait lists,” the Chicago Reporter’s Jonah Newman tells us, referring to the lists for both physical CHA housing units and so-called Housing Choice Vouchers.

“And that’s more than a quarter of all the households in Chicago.”

Did you get that? A number equivalent to more than a quarter of Chicago’s roughly one million households applied for housing in CHA’s approximately 18,000 available units, all  of which are currently occupied, or for vouchers.

“But what might be more shocking is that about forty percent of the households in the City meet the income requirements for Chicago Public housing,” he continues.  “So actually the number of people who signed up for the wait list is quite a bit below the number of households who could have signed up. This is despite the fact that we know the average time for someone waiting on the wait list is about 3-1/2 years – 41 months. Most of the people who do sign up for the wait lists probably aren’t going to get housing any time in the near future.”

So who are these people who applied?

Many are homeless. But homeless doesn’t necessarily mean living on the streets.

In this week’s WBEZ series on homelessness Linda Paul, who’s a Chicago Newsroom producer, presented a series of four reports on people who panhandle on Chicago expressway ramps, and Susie An profiled a family living for years in a shelter. But there’s a different group of homeless people who don’t show up in the City’shomeless counts.

“There are so many people who are living very layered,” explains the Tribune’s Lolly Bowean. “They’re living multi-family in one household. They see this as the opportunity to finally apply to get independent housing that they could  afford.”

Since the implementation of the CHA’s Plan for Transformation, most of Chicago’s high-rise developments have been torn down, but replacements have been slow in coming.

“It’s fair to say that the CHA began with over a hundred thousand hard units, and is now down to somewhere in the neighborhood of 20,000 occupiable units,” Newman points out. But even of those, “about 2,000 are sitting empty.”

Author, journalist and founder of We the People Media Ethan Michaeli laments the radical downsizing of the CHA as a landlord and its now-dominant role as the distributor of vouchers.

“Public housing was a resource that was being provided to people and it had an effect that radiated throughout the entire economy,” he explains. “We’ve removed public housing as part of the mix.  Part of the maligning of the reputation of public housing was a pretext to demolishing public housing and really reducing the overall number of units. Chicago is, I think, a perfect exemplar of what we’ve done throughout the country. Now, public housing is gone, the problem remains. What are we going to do about it?

And author and WBEZ south Side Bureau reporter Natalie Moore raises a significant social issue. “The problem with the voucher program is that it’s ended up concentrating families in poorer, segregated neighborhoods,” she tells us.

“There really isn’t any political will” to improve the situation, she continues. She refers to a story she did months ago about the CHA’s “super-voucher” program, which experimented with paying higher-than normal rent subsidies to allow some former CHA families to live in well-appointed high-rises at the  lakefront.

“When Chicago knocked down these high-rises we said that we wanted to de-segregate these pockets of poverty, that we did not want to keep people in places where only poor people were living under the same conditions,” says Bowean.” So the ‘super-voucher’ as a so-called program, does allow a very small  number of families to move into neighborhoods where there could be a possibility of better schools, of better jobs, of better outcomes.”

But when stories began emerging about the low-income families being paid with taxpayer dollars to live in luxury buildings, Congressman Aaron Schock launched an investigation. “Then there was this sort of kick-back, and the program was adjusted almost immediately,” she adds.

To Natalie Moore, it was a reminder of the kind of influence – negative and positive – politicians have on CHA policy. “There are so many things to call the CHA on the carpet for, and that is the one thing CHA completely reversed. It made me think, if this plan for transformation is gonna get done, if this reserve’s gonna get spent…nothing’s gonna change with CHA on any of these issues until some politicians with heavy weight come in and say change it.”

Well, didn’t that sort of happen when the Mayor and his new CHA chief, Michael Merchant, opened the wait lists for the first time in years and announced that they would increase the number of available vouchers?

“I do consider the opening of the waiting lists as something that has very suspicious timing,” says Michaeli. “After years of inaction under Mayor Emanuel, suddenly the housing authority is doing something that has the appearance of providing resources to people who need it – several months before the election. And, I’m sorry, it does not wash for me as something that is a sincere effort or something that makes up for the years of inaction under this administration.”

“There’s been a lot of changes in  the last 12 years since the Plan for Transformation was implemented,” asserts Bowean. “This was a long-term plan that didn’t take into consideration the fact that the market may change, the political climate may change, and there’s been a lot of factors that have influenced the way the CHA operates. Yet they’ve stuck with this plan. As a result, we see an agency that, on paper, when you look at their budget and their financials, it can look robust…but then when you look at the number of people being served, that need to be served, and that are not being served, then there’s concern.”

Both Michaeli and Bowean tell us that there have been so many changes at the top at CHA in recent years, and there is such turmoil at the staff level, that it can be difficult to get even the most routine work done.

An important reason why those 2,000 or so units remain unoccupied is that they’re caught up in a policy dispute about  the CHA’s insistence on redeveloping its properties in a roughly  1/3 CHA, 1/3 subsidized housing, 1/3 market-rate matrix. Moore and Michaeli say it isn’t working.

I think there as this idea that, oh, I’m poor and my market-rate neighbor’s  gonna get me a job”, Moore says.” There has to be a serious discussion about how to integrate these neighborhoods with income or with race…because the same neighborhoods have the same issues, and now you’re putting more voucher-holders into those neighborhoods.”

“The whole idea was predicated on exposing residents to other classes to kind of help them improve their lifestyle, as if poverty was a self-imposed condition that wasn’t the result of an absence of resources and support. It was never going to work. Im not even sure the people who proposed it thought that it was going to work,” Michaeli concludes.

 

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CN December 4, 2014

 

Our special guest this week: Mayoral candidate Jesus “Chuy” Garcia.

Also joining us, Evelyn Garcia, the candidate’s wife, and Hal Dardick, city hall reporter for the Chicago Tribune.

We covered school policy, including charters and an elected school board – and the best way to handle the pension crisis. We also talked about policing, reducing crime, and minimum wage. Among the headlines – Garcia is calling for a moratorium on the construction of new charter schools, and he’s not so sure that a commuter tax or a tax on LaSalle Street will solve the multiple funding crises.

Here are transcripts of Mr. Garcia’s comments.

On charter schools:

“The charter-mania that began over 2o years ago has resulted in the creation of over 120 charter schools in Chicago. Some of them do good work, most of them – the jury’s still out. There’s no case to be made to say that charters are superior to neighborhood schools. There has been a transfer of resources that are going into charters that would have gone to neighborhood schools that I’m very concerned about. Especially if there are no studies that show that charters are superior to neighborhood schools. Given that our education system is under-funded, I think this has had a detrimental effect on public schools.”

“I do understand why parents have signed their children up in charter schools, because they’ve been marketed heavily to think that it is a better alternative. I think some of them perhaps, because they have dress codes and discipline codes, and they’re more selective in their enrollment of children, is what may attract parents to them, but the record is clear. Charters are not superior to neighborhood schools. We need to invest in neighborhood schools. If we don’t invest in neighborhood schools, we’re not providing children everywhere in the City the opportunity to achieve their full potential. ”

I think we should have a moratorium on the expansion of charter schools. I think we need to invest in neighborhood schools and make neighborhood schools the center of community. They are existing assets in communities throughout Chicago that have the potential to do lots of things for student, parents and community members at large.”

On the fifty closed Chicago Public schools:

“A lot of harm has been done. Particularly because when those schools were closed young people and parents were told that most of their children would go to better schools when in fact they haven’t. The majority have wound up in either level three schools or level two, and only 21% in level one schools.”

On an elected school board:

“I support an elected school board. I think it would ensure greater transparency, more accountability. I think that if an elected school board had been in place we would not have had the massive school closings in Chicago.

On public-service pensions:

“What type of priorities do you have? Do you care about people? The Supreme Court will likely rule…that we need to keep our word to retirees and that we’re obligated to insure that those commitments are fulfilled. So that will mean coming back and figuring out revenue sides as to how we fund those pensions. It may also include restructuring of the pension obligations so that we can pay them over a longer period of time. But surely we’re only here because of neglect and we’ve kicked the can down the road.”

On finding new revenue for pensions

“I like the progressive income tax. I think they’re fairer to people. It protects low-income people and senior citizens. So something in that realm is where the solutions will be found.

“I’m not convinced that the commuter tax may be the solution.  I can’t see taxing people who are coming into the city to work from places like Blue Island, Midlothian, Cicero and Berwyn. I’m not sure that is progressive taxation. One of the concerns I have about the stock transactions tax is its constitutionality, the fact that the state legislature will have to act on it in order for Chicago to have that type of authority. And from the looks of it, if I read the November election results correctly, we’re not likely to see that type of initiative approved in the General Assembly or by the new Governor. ”

“We need to do something bold. Something that we’ve never considered before. In terms of figuring out the revenue side of things, we can’t just be saying we’re against any type of tax. We need to be for progressive taxation because it has the fairest impact on all of society…”

“I don’t agree with trickle-down economics. I don’t believe necessarily in austerity that affects poor people who are earning very modest wages.

On the Mayor’s minimum-wage boost:

“It was a good political move for the mayor. But I think it comes late and it’s too little. I think people see right through it. He only came around to the minimum wage when the polls showed him lagging…I think that a living wage in this day and age is closer to fifteen dollars.”

On whether we have enough police:

“We don’t. The Mayor promised to put 1,000 new cops on the street, and he didn’t keep his promise. We need to increase the number of police officers, but with that will have to come real community policing. Building relationships of trust and confidence so that people feel the confidence to want to come forward and cooperate with the police. They’re the real experts in their neighborhoods. They know where everything goes on. They know who he drug dealers are, who the gang-bangers are, they know where the guns are…unless police officers can establish relationships and know people in he neighborhood things won’t get better.”

On how he’ll convince Chicagoans to cote for him:

“My relationships span across ethnicity, race, and faith. And I think that I can bring that case everywhere to the City of Chicago. The City has worked for a select few under this administration. I think the city should work for everyone in Chicago. And that’s what I want to talk to people about over the next three months as I make the case for regime change in the City of Chicago.”

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CN Nov. 27, 2014

 

We re-visit the topic of fracking in Illinois this week, since the regulations were officially published within the last few days and the permitting process is now open.

In this program we review some of the arguments made by guests on two previous shows.

Mark Denzler is with the Illinois Manufacturer’s Association, which favors fracking, and Ann Alexander (NRDC) and Dr. Lori Chamberlain (Frack-Free Illinois) oppose the practice.

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CN Nov 20, 2014

 

The most critical moment when you’re approaching a traffic signal is when the light turns yellow and you have to decide – go forward or stop? All kinds of information factors in. Are there cars close behind you? How fast are you going? And while your brain is calculating all of this, the clock is ticking. Will you get into the intersection before the light tuns red?

In Chicago, unless the speed limit is higher than 30, you have 3.0 seconds to figure it out And if your decision is wrong – and you hit the line at 3.1 seconds – there’s probably a ticket in the mail from one of those friendly red-light cameras.

You might be surprised to know that in most other places in America the yellow light is actually longer. Sometimes a full second longer.

That’s what WBEZ’s Odette Yousef found out when she researched her excellent piece on traffic light timings. Turns out there’s also something called the “all-red” – a moment when all the lights are red, to allow traffic the clear the intersection. Chicago, she discovered, does it very differently. Chicago makes the all-red longer. Look at her graphic.

Screenshot 2014-11-19 21.41.06

The top line is what federal and industry experts recommend. The bottom line is what you encounter every day at Chicago intersections.

“If you look at that whole total as the amount of time you have to clear a intersection they’re pretty much giving you the same amount of time that engineers would recommend,” Yousef explains. “The problem is that they’re misallocating that between the yellow and the red. So if you enter the intersection during the time when it’s actually during the safe period but it’s turned red, you’ll get a ticket.”

So, think fast. Decide quickly. The unflinching robot eye is watching you. And counting. And, says Yousef, it comes down to a conflict between safety and fairness. Nobody’s arguing that Chicago’s system is less safe, just that it doesn’t seem fair.

“There have been studies that say if you extend the yellow light by one second, for example, the number of violations goes down quite dramatically,” she tells us.


Here’s an interesting conundrum. The Lucas Museum, we’re told, has insisted that it must be built on the lakefront. But when the project’s designers showed us their first renderings, the huge, mountain-like building essentially had no windows.

There may be lots of reasons why a building devoted heavily to film might exclude natural light, but couldn’t it then be built just a little bit further away from the legally-protected shoreline?

That’s the issue Friends of the Parks is dealing with, and President Cassandra Francis joined us to talk about their lawsuit against the proposed site between Soldier Field and McCormick Place East.

As you probably know, the site the City selected is currently occupied by parking lots for Soldier Field and McCormick Place.  The museum would occupy this space, after, presumably, sinking the parking lots underground.

“What we would call the flawed argument that they are just parking lots is a concept that we would like to revisit,” Francis tells us.  “They’re revenue producing. They are very actively programmed. They were sold by the Chicago Park District when Soldier Field was being built as useful and very viable ongoing uses. We like them because they provide open space in that area, because once you put a building in that area it will be forever precluded, especially a building that is iconic and single-purpose-designed. It would be very difficult for that to revert back to open space in the future.”

Francis advances the idea that, in this situation, parking lots are more beneficial to the lakefront than another structure. In time, she says, they could be “greened”, making them more visually acceptable and adding park space.

Their lawsuit argues that the site is protected from projects like the Lucas Museum in several ways, including both city state and state law.

“The City and the Chicago Park District don’t have the authority to dedicate that land,” she explains, “even though they may, in fact, own it. The use of the land is actually arbitrated by the State for the benefit of the public. And it’s not just Chicagoans. It’s also any citizen of the State of Illinois.”

Citing recent studies from the Chicago Metropolitan Agency for Planning, Francis predicts that, in about the next 25 years Cook County will grow by almost 800,000 residents and that several hundred thousand more people could live and work near the lakefront. That, she says, will create intense pressure to develop the lakefront with buildings and attractions. It’s a battle that’s been going on for more than a hundred years, and it won’t diminish any time soon. That’s why Friends of the Parks doesn’t want to see another major structure at this location.

“If we let this one happen it could very well lead to shoreline sprawl.” she claims. “So the argument of why an iconic museum – we’re thrilled it’s in Chicago – has to be on the lakefront when there’s no windows in a place where we already have way too much traffic congestion, is a challenge.”

An alternative Friends proposes – one which has been articulated very effectively by Tribune Architecture critic Blair Kamin – is to move the project across the street and immediately south of McCormick Place. It could be built on a deck over the
“marshaling yards”, a massive open parking area for vehicles serving the convention center.  Kamin and FOP argue that site preparation would be less expensive, because with decking you’re essentially creating “virgin land”, and that the resulting museum would actually be closer to the lakefront. In addition, the new attraction could stimulate other developments, such as Bronzeville and whatever eventually rises on the old Michael Reese site.

Screenshot 2014-11-22 08.31.28

In this Google shot, you can see the proposed site between Soldier Field and McCormick place (the circular, light-colored Waldron parking deck and the asphalt surface lot to the south) and the alternate site, the long, grey strip immediately south of the Stevenson interchange, with LSD to the east.

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CN Nov. 13, 2014

 

What do the election of Bruce Rauner, container ships, shopping malls, student loans, unemployment numbers, giant paving machines and Google have in common?

Well, they’re part of the economic theory of everything, perhaps.

Tribune Business columnist Melissa Harris tells us that in today’s world, “All politics is local but all business is global. We are not the maker of things any more. That is a structural change in our economy that we are still grappling with. It does not mean we still can’t be a global leader. It doesn’t men we can’t be the most thriving economy in the world, but it is gonna take a greater investment in education, which this country is currently not making.”

Globalization has raised living standards in many places and lowered them in others. As she recently reported, Americans who were under 35 in 1995 earned wages that were 9% higher than today after adjusting for inflation. Student loans are crushing our youngest generation.

“They now exceed credit-card debt,” she explains. “You’re seeing difficulties acquiring jobs right out of graduation. It starts from the beginning. What people don’t understand is that the money you earn compounds. So if you struggle right from the beginning, you’re gonna be at a disadvantage when you’re seventy and it is nearly impossible to catch up.”

If you happen to be poor, finding decent affordable housing is becoming more and more difficult. And it’s not made any easier when your landlord can’t find money to fix that leaking roof and he can’t ask his already stressed tenants for any more rent. That’s what Micah Maidenburg wrote about in this week’s Crain’s Chicago Business. A DePaul University study found that it’s pretty easy for a property-owner downtown or in one of Chcago’s booming neighborhoods to get that new-roof loan, but in the wide swaths of Chicago that aren’t bathed in money, the banks are lending far less.

“If a bank is making a loan they have to ask themselves, if this goes belly-up and we foreclose and have to take back the property, it’s easier to sell a 20-unit apartment building in Lakeview than it is in the more distressed markets,” Maidenburg tells us.  So it’s not that there’s no money being lent in south and west Chicago, its just that it’s disproportionately less. And that deepens the cycle of poverty.

Melissa Harris tells us that Bruce Rauner’s transition team has been put in place, but, as is often the case, there’s a different, closer-in group of informal advisors who will have great influence with the new governor. They include:

Ron Gidwitz, the multimillionaire who in 1996 sold his family’s business, Helene Curtis Industries, for more than $900 million. He ran for the Republican gubernatorial nomination in 2006.

William Strong, a longtime friend and business associate of Rauner’s, who helped raise money this year in Illinois for the Republican Governor’s Association.

Phillip o’Connor, a policy expert who served Republican Gov. Jim Thompson as former chairman of the Illinois Commerce Commission and director of the Illinois Department of Insurance.

John Gates, Jr., a wealthy business executive. He sold Centerpoint Properties Trust, a real estate company he co-founded, for $3.5 billion in 2006.

So what does this all have to do with paving machines, container ships and Google? Well, the paving machines have put countless road construction workers in the unemployment lines, the container ships are what started the rush to globalization, and Google – well, Google is only a few years away from worldwide domination, right?

 

 

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CN Nov 6 2016

 

What’s going to happen when Bruce Rauner and his new opponent Mike Madigan finally sit down for their first big meeting? How hostile will it be? Not very, speculates Delmarie Cobb, veteran Democratic political strategist and observer.

“They have a record already of working together,” she says. “They worked together on  Stand For Children Illinois, when they raised the threshold for the (CTU) strike vote. And to expand charter schools. And the $98 million to UNO to open schools. So it’s not like they haven’t worked together. It’s just that we didn’t know about it. So now we’re gonna know about it.”

Chris Robling had a very, very good night on Tuesday. As a prominent Republican strategist and ubiquitous commentator on broadcast media and print, Chris is very pleased that Bruce Rauner has become Governor.

“I think that Rauner is genuinely not political,” he claims. “Part of his assertion to the people is – I don’t need this job. And I’m not looking to be something else. I’m not looking to be Senator or use this as a stepping stone to president or something. I’m looking to straighten out the State of Illinois. I think Rauner is gonna do horse-trading because that’s the only way he’s gonna get agreement. But I think that personal political, and, indeed partisan political considerations are going to recede. I think you’re going to see him moving us to fiscal sanity with whatever chits he can exchange.”

“But I think that what you call fiscal sanity is political,” Cobb retorts. “I don’t care that he’s not a career politician or that he’s not taking a salary or that he only wants to be there two terms. What I care about are the issues that he considers dear to him. And those are issues that I don’t think are necessarily the best issues for the majority of people who are in the most need. He did not support minimum wage – he only came around to minimum wage when it was first discovered, and then with caveats. And those caveats are pro-business and they’re designed to create an economic climate in Illinois that will help other businesses and CEOs like himself…He wouldn’t have expanded Medicaid. He’s for the privatization of public education. He’s anti-union. He wants to create opportunity zones, as he calls them, which is a right-to-work state. So when you look at those, those are all political. So he doesn’t have to be political, he is political.

Robling changes subjects. “I would advance this as a general theory right now. The single most significant phenomenon that is facing U.S. politics right now and domestic government is the relationship between politics and the public-employee unions. There’s no question in my mind about it.”

Again, Cobb doesn’t see it that way.  “The biggest impact to the decline of the middle-class is the decline of unions. And as for African-Americans, unions are the backbone for the black middle-class. There would not be a black middle-class had it not been for unions…Those were the jobs that we were able to get. The government jobs, the teaching jobs, those were the jobs we were able to get when we couldn’t get any other jobs.”

But union members are reluctant to stay in their unions, according to Robling.

“In Michigan, in Wisconsin, in Indiana, when those relationships were opened so that union membership was no longer compulsory,” he asserts, “In Indiana it was 93% left the unions, in Wisconsin it was 91% and I think in Michigan it ended up being 92.5 percent. So if unions are doing so well for these individuals, then you’ve gotta reconcile that with the fact that when people have a choice, they leave.”

We talk about the Illinois turnout numbers, especially with regard to the Governor’s race. “There are things Quinn could have done to increase the black turnout and I think that’s where he missed opportunities,” she says.  Only about 16% of African Americans voted,  she says, although Quinn got 93% of it.

So was the black vote in Cook County suppressed deliberately? Well, says Robling, it might have been discouraged by popular talk show host Tavis Smiley.  “This is Tavis’ quote, not mine. He said there is no reason for blacks to turn out in this election. Obama has given us no reason to turn out. He said there is no reason for Hispanics to turn out. If you take a look at the communities, these guys shouldn’t be turning out. That’s not Rauner’s fault.”

And further, claims Robling, Bruce Rauner has a long history of involvement in minority communities. “I don’t think people should sell short Rauner’s involvement in the most challenged communities in the City of Chicago. It goes back more than a decade in terms of his personal involvement and personal commitment and he and Diana spending tens of millions of dollars (on charitable causes in minority communities).”

“Well,” Cobb responds,”I can be charitable and never employ a black person in my life. There is a big difference.”

Bonus question:

What are Hillary’s chances after Tuesday’s elections?

Chris Robling: “zip.”

Does the election help Hillary?

Delmarie Cobb: “Yes.”.

 

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CN Oct. 30, 2014

 

Mark Denzler is with the Illinois Manufacturer’s Association, and he speaks for a coalition of industries and interests that want to get hydraulic fracturing started in Illinois as soon as possible.

We asked him a direct question.

“Can you tell me that you believe that horizontal fracturing is not harmful to the environment?”

We got a direct answer.

“Yes. A hundred percent. You’re always going to have issues, no matter what industry you’re in…accidents do occur. No doubt about it. But when you look back at folks who have studied this…Lisa Jackson who was the EPA administrator for President Obama said this can be done safely. Dick Durbin was in his debate last night on WTTW and they were asked about fracturing. He said he’s talked to the last two secretaries of energy…and they said it can be done safely.”

Fracking’s been going on for years, and is pretty commonplace (and often controversial) in a couple of dozen states, so what’s the status of fracking in Illinois?

A law authorizing fracking in Illinois passed a long time ago.

“Today’s an anniversary, not one we celebrate, but it’s been 500 days since the law was signed, and we’ve yet to see the final set of rules,” Denzler tells us. But passing the law was only part of a complex process.

“What happens is the Legislature says, OK, take that law and we’re gonna give it to the Illinois Department of Natural Resources,” explains Julie Wernau, who’s been covering the process for the Tribune. “And they’re gonna turn it into rules and regulations so that that they can actually start issuing permits for fracking. But that process has been lengthy. They had to hold hearings, they had to create a draft of the rules and then people responded to the rules. They commented, they got thousands and thousands of comments, more than they ever have on any rules they’ve ever created. So then they had to create a second draft and come back and say, here’s what we think the rules should be after listening to everybody, and then the Joint Committee is supposed to approve it or ask for changes or just reject them outright, and we’re waiting for this committee to decide.”

They have until november 15 to decide. And if they don’t reach a decision, the whole process starts over again.

What’s different about this process is that it involves not only drilling vertically, but also horizontally.

“Thousands of feet below the surface there are these oil deposits,” Wernau explains. “What they used to do was just go down vertically and get the oil out. Well now they say, how about we go down vertically and look at that whole layer, then go horizontal and frack the whole way? That’s why it’s a lot more oil.”

It’s also a lot more controversial. Opponents of the process appeared on our October 2 show, and you can watch it here. 

Among the criticisms is the  assertion that horizontal fracking, which involves the injection of millions of gallons of water deep into the ground along with various chemicals, sand and gravel, pollutes our drinking water. In the documentary Gasland, a man demonstrates  his ability to light the water from his kitchen faucet on fire, and he blames recently-introduced fracking for the problem.

“Water lighting on fire was a famous scene in (Gasland),” Denzler explains, “And the Colorado Oil and Gas Commission…looked at it and found that it was geothermic methane. It had been the breakdown of natural materials. And people in that area had been lighting their water on fire for a hundred years. I would note there are three towns in the United States called Burning Springs because their waters lit on fire, not because of hydraulic fracturing.”

And Wernau adds that water contamination is usually not caused directly by the drilling.

“There’s some misinformation out there. People think that a lot of water contamination happens from the fracking process. Actually it has a lot more to do with what happens with the fluid that comes back up. If it’s sitting for instance in open pits and there’s a big rainstorm, that’s how groundwater can get contaminated. So a huge part of the law that was negotiated was – we can’t be storing this stuff in open pits. We have to have it contained. Illinois was able to learn a lot from the mistakes of other states that have done this.”

Storage of the fluids that return to the surface has indeed been a major issue in the rule- making process. The drilling interests have agreed to store these polluted liquids in tanks or containers, but the opponents are still claiming that the containment regulations aren’t stringent enough.

Nevertheless, it’s undeniable that fracking has changed the American economy. Gas prices have come down somewhat, and natural gas, which is often a by-product of oil fracking, has become abundant, lowering heating bills and transforming some industrial sectors. (However, as we discuss on this show, oil drillers are not always required to capture the natural gas, and in many cases this valuable resource is simply burned into the air, wasting this precious resource simply because it’s too expensive for the drillers to catch and transport.)

In the end, the set of rules hammered out between the industry reps and the environmental community does address many of the issues that have been raised in states that got into the game quickly. In this case, Illinois may have devised stronger rules simply because it came later to the process.  But Denzler, who calls the regulations the most stringent in the nation, says landowners and lease-holders in Southern Illinois have waited too long, and that it’s time for fracking to get going in Illinois.

“If you look back in the past five years under the President’s administration, all the job growth, almost all of it – almost 100%, comes from the energy sector. The increased jobs, the increased revenue. So what it’s done for this country over the past five, ten years has been significant.”

 

 

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