News

Illinois: Government Services Slashed (Worst Likely Ahead)

The repercussions of irresponsible government promises and spending will be fully realized during a period of all-out deflation.

One of those repercussions will be a drastic cut in government services.

Robert Prechter's Conquer the Crash, a book about surviving a deflationary depression, stated:

Don't expect government services to remain at their current levels. The ocean of money required to run the union-bloated, administration-stultified public school systems will be unavailable in a depression. School districts will have to adopt cost-cutting measures. ... The tax receipts that pay for roads, police and jails, fire departments, trash pickup, emergency (911) monitoring, water systems and so on will fall to low levels, and some of these services will be curtailed.

That quote fits the current goings-on in Illinois, even though deflation has yet to arrive.

Here's more from a September Illinoispolicy.org article:

The rapidly increasing cost of pensions is crowding out spending for core government services.

Since fiscal year 2000, after adjusting for inflation, state spending on pensions has grown more than 500%. Spending on government worker health insurance has grown 127%. Meanwhile, spending on K-12 education, often touted as a top priority by Illinois politicians, is up just 21%. All other spending, including social services for the disadvantaged, is actually down in real terms by 32%. Total spending has risen by 15% over that period.

Rising Illinois pension costs crowd out core government services

Consider the following list of programs and agency budgets, all of which are included in the "other spending" category. These programs include the state police, helping poor students pay for college, protecting children from child abuse, aiding the poor, and fighting disease and other public health issues.

Illinois pension spending undermines basic government functions

... In 2018 Peoria was forced to lay off 16 police officers, 22 firefighters and 27 municipal workers to be able to afford its pension payment. That same year the South Chicago suburb of Harvey laid off 18 firefighters and 13 police officers to make its own pension contributions.

Without pension reform, Illinois residents face a future in which they're asked to pay more in taxes to receive ever less in valuable government services.

If Illinois government services are being cut to this extent, even with a healthy national economy, imagine the scenario during a period of deflation.

Now is the time to prepare for what's likely ahead by reading the free report, "What You Need to Know Now About Protecting Yourself from Deflation."

By submitting this form you authorize EWI to send regular emails and updates. You may unsubscribe from our mailing list at any time.