Rahm Emanuel
Reaganomics will bring our cities to ruin
Chicago and Colorado Springs have been praised as models -- but wrecking public infrastructure isn't the answer
If America circa 2011 were a movie, there’s little doubt it would fall into the “sci-fi/horror” genre. We’ve got a government that emulates Big Brother, wars that are prosecuted by Terminators, and leading politicians who seem fit for the cover of Fangoria magazine — and that’s just at the federal level. Down at the local level, deindustrialization and recession have left more and more cities looking like the set from “Twelve Monkeys.” Even more troubling, the two archetypal models for supposed “success” in the future are Colorado Springs and Chicago, two enclaves that have been pioneering a sub-genre of policymaking we might call “Municipal Dystopia.”
The Springs, as we call it here in the square state, has made national headlines as a Republican bastion with an unwavering commitment to the old tax-cuts-and-budget-cuts theory of growth. During the recession, that has resulted in both comparatively low property tax rates and in darkened street lights, cuts to police and firefighting forces, and an end to basic municipal services.
The more Democratic Chicago, on the other hand, has gone in a slightly different — but equally radical — direction. Instead of offending its liberal voters by overtly terminating municipal services à la The Springs, Chicago has instead cloaked its Municipal Dystopia agenda in complex corporate transactions, raising short-term money by selling off huge chunks of public infrastructure to private investors, often at scandalously low prices. In the process, the city has become “the most aggressive city in the United States in the privatization of public infrastructure,” according to the Illinois Public Interest Research Group — and other cities like New York and Pittsburgh have been looking to follow its lead.
Such schemes as the Skyway privatization plan and the selling off of parking meters provided a relatively small amount of money up front to momentarily fill public budget shortfalls. But that cash came in exchange for guaranteeing huge future profits for private investors — profits that will be financed by the ever-increasing fees those backers are already forcing Chicago residents to pay.
This has been the tale of twin cities hurtling down two lanes of the same Reagan-paved road — perhaps until now.
A few weeks ago, the Springs hit the brakes, as anti-tax forces were decidedly crushed in municipal elections at the same time Democrat Richard Skorman swept into front-runner position in the city’s May mayoral runoff. The stunning results appear to be a direct repudiation of the Springs’ previous commitment to the Municipal Dystopia agenda, in part because one of the electoral casualties was Douglas Bruce, the well-known architect of Colorado’s anti-tax ballot initiatives (and good thing he was defeated — his tenure on the council would have been interrupted by his recent indictment).
By contrast, Chicago may be hitting the accelerator in the face of foreboding news.
The Medill News Service reports that the one-time money the city raised from privatization schemes is now running out, as the city is quickly “burning its way through millions of dollars [from the] deals, threatening to leave the long-term financial health in ashes.” Meanwhile, a new lawsuit cites the city’s own data in alleging that taxpayers were fleeced by a collaboration of politicians and corporate consultants who sold public infrastructure at deliberately below-market prices. Nonetheless, Chicago’s incoming mayor, former investment banker Rahm Emanuel, is now loading up his new administration with privatizers.
Specifically, Emanuel’s top economic advisor will be private equity investor Mark Angelson (for more on the private equity industry and the looting of public infrastructure, see this report in Businessweek). And as the New York Times reported this weekend, Angelson will head an economic team chock-full of consultants who specialize in privatizing public infrastructure:
During the campaign, Mr. Emanuel advocated a go-slow approach to any future privatization deals, but there seems little doubt what sort of advice his economic advisers will be offering. Lois Scott, the chief financial officer, runs a consulting firm specializing in privatization deals that has put together more than $35 billion in bond sales over the years. The budget director, Alexandra Holt, is a Baker & McKenzie lawyer who worked for clients trying, unsuccessfully, to privatize Midway airport.
Chicago, of course, is still a few privatizing steps behind smaller towns like Maywood, Calif., and Sandy Springs, Ga. And its commitment to the Municipal Dystopia agenda hasn’t yet delivered the same painful budgetary consequences that may now push the Springs off that course. But if the numbers from Chicago’s past privatization deals predict the future, then it and other cities following the same path will indeed face those consequences — the only question is whether, like the Springs, those cities must bear that pain before voters finally demand a true change of direction.
David Sirota is a best-selling author of the new book "Back to Our Future: How the 1980s Explain the World We Live In Now." He hosts the morning show on AM760 in Colorado. E-mail him at ds@davidsirota.com, follow him on Twitter @davidsirota or visit his website at www.davidsirota.com. More David Sirota.
The real, fake @MayorEmanuel creator revealed
The author of one of the notorious and mysterious twitter feeds is a punk-turned-journalism-professor in Chicago
Former White House Chief of Staff Rahm Emanuel leaves a news conference in Chicago, Monday, Jan. 24, 2011, where he responded to an Illinois appeals court ruling that threw him off the ballot for Chicago mayor because he didn't live in the city in the year before the election. The court voted 2-1 to overturn a lower-court ruling that would have kept Emanuel's name on the Feb. 22 ballot. (AP Photo/Charles Rex Arbogast)(Credit: AP) 5 months after it began, @MayorEmanuel had accrued 39,102 followers, notoriety among Washington insiders, and a $5,000 request from now-Mayor-elect Emanuel to reveal himself after the election. And for 5 months the anonymous Twitter feed kept up a kind of Greek chorus to the Chicago mayoral race by providing a take on real events with an increasingly absurd bent. By the end it had veered into an insane fantasy that both celebrated Emanuel’s inevitable victory and had him disappearing into a void in the sky.
Continue Reading CloseJustin Spees is an editorial fellow at Salon. More Justin Spees.
Emanuel faces big money woes as next Chicago mayor
The former White House chief of staff has his work cut out for him, will have to address Chicago's shaky finances
Former White House Chief of Staff Rahm Emanuel speaks at his election night party Tuesday, Feb. 22, 2011 in Chicago. Emanuel was elected mayor of Chicago Tuesday, easily overwhelming five rivals to take the helm of the nation's third-largest city as it prepares to chart a new course without the retiring Richard M. Daley. (AP Photo/Kiichiro Sato)(Credit: AP) Former White House chief of staff Rahm Emanuel won’t have much time to celebrate his victory as Chicago’s new mayor.
Emanuel, who overwhelmed the race with truckloads of money and friends in high places from Washington to Hollywood, will take control of a city in deep financial trouble with problems ranging from an understaffed police department to underperforming schools.
On Tuesday, Emanuel won 55 percent of the vote, easily outdistancing former Chicago schools president Gery Chico, who had 24 percent, and former U.S. Sen. Carol Moseley Braun and City Clerk Miguel del Valle, who each had 9 percent. He succeeds Mayor Richard M. Daley, who is retiring after 22 years in office as the longest-serving mayor in Chicago’s history.
Continue Reading CloseAre you excited for Mayor Rahmbo?
He's about to post a triumph that has eluded most former White House chiefs of staff -- whether you like it or not
Chicago mayoral candidate Rahm Emanuel talks to reporters during an interview at 42 degrees North Latitude coffee shop in Chicago, Saturday, Feb. 12, 2011. (AP Photo/Nam Y. Huh)(Credit: AP) To the extent there’s any suspense in Chicago’s mayoral race, it’s over whether Rahm Emanuel will be elected tonight or on April 4.
At issue is whether President Obama’s ex-chief of staff manages to secure an outright majority in the preliminary election being conducted today; polls have shown him running around the 50 percent mark. If he clears that hurdle when the ballots are tallied tonight, the game will end on the spot.
If he falls short, there will be a runoff between Emanuel and the second-place finisher, who figures to be Gery Chico, the former chief of staff to outgoing Mayor Richard Daley. While it’s theoretically possible that Chico (or Carol Moseley Braun or Miguel del Valle, each of whom might also place second) could corral all of the non-Emanuel voters and overtake him in the runoff, such a scenario is extremely unlikely. In reality, the only major obstacle to Emanuel’s coronation was the issue of his residency, which was finally resolved in his favor several weeks ago.
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Steve Kornacki writes about politics for Salon. Reach him by email at SKornacki@salon.com and follow him on Twitter @SteveKornacki More Steve Kornacki.
Chicago voters cast “Daley”-less mayoral ballots
The big question: Will heavy-favorite Rahm Emanuel get the 50 percent of votes needed to prevent a runoff election?
Chicago mayoral candidate Rahm Emanuel talks to reporters during an interview at 42 degrees North Latitude coffee shop in Chicago, Saturday, Feb. 12, 2011. (AP Photo/Nam Y. Huh)(Credit: AP) Chicago voters cast ballots in a mayoral election Tuesday that didn’t include the name “Richard M. Daley” for the first time in decades — a contest that will bring new leadership to a city facing some of the most daunting economic challenges in its history.
The six candidates spent Tuesday morning still pushing for votes, shaking hands with surprised commuters and diner-goers and pleading their cases for why they should be picked to succeed the retiring Daley, who will leave office this spring after 22 years on the job.
Continue Reading CloseRahm Emanuel is back on the ballot for Chicago mayor
Former White House Chief of Staff can legally run after Illinois Supreme Court overturns lower court's decision
Former White House Chief of Staff Rahm Emanuel speaks after being endorsed by U.S. Rep. Mike Quigley as he awaits a ruling by the Illinois Supreme Court regarding his residency which could remove him from the ballot in the upcoming mayoral election, Thursday, Jan. 27, 2011, in Chicago. (AP Photo/M. Spencer Green)(Credit: AP) The Illinois Supreme Court has put Rahm Emanuel back on the ballot for Chicago mayor.
Thursday’s decision revives the campaign of the former White House chief of staff who was thrown off the Feb. 22 ballot by an Illinois appellate court for not meeting a residency requirement because he hadn’t lived in Chicago for a year before the race.
Emanuel lived for nearly two years in Washington working for President Barack Obama until he moved back to Chicago in October to run for mayor.
In their appeal to the state’s high court, Emanuel’s attorneys called the appellate court decision “one of the most far-reaching election law rulings ever” issued by an Illinois court.
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