Who would have thought that Chicago’s Democrat Mayor would be an outspoken advocate of getting the government out of the management business? From the Wall Street Journal:
“I don’t look to Washington having all the answers,” he continues. “because they print the money and they are basically in debt. And then you take state governments which are enormously in debt now. And so you have to think outside the box.”
Along those lines, Mr. Daley has launched a controversial plan to raise capital by leasing public assets, including Chicago’s Midway Airport, a major toll road called the Chicago Skyway, and parking garages and parking meters. The mayor’s plan has so far pulled in $6 billion — a model that other states and cities or even the federal government may want to consider. It’s an alternative to taxes as a way to raise money, Mr. Daley has suggested. Besides, the “government can’t manage things,” he says, adopting a tone surprising from a lifelong Democrat. “You can see the Post Office, you can see the railroad. I’ve always said that, you have to be much more creative in these very serious financial problems we have.”
The idea that this is an alternative to taxes is a shell game. Before the parking meters were leased, you didn’t have to feed them after 9pm or on Sundays and holidays. Those days are gone. Now that the lease is taking effect, not only is the price going up, but the meters will require feeding 24 hours a day, every day.
The city didn’t raise any taxes, but they might as well have. A private company has agreed to play ‘bad cop’ on the cost increases, but it is obvious who is to blame for this fine mess.
Is there a lesson here for the federal government? Should they lease the postal service and Amtrak? Can you imagine the local/state/federal government leasing out tax collection? The state would get paid up front and then the private entity would come after everyone like a debt collector from hell.
