Chicago has its own pension and spending problems. But it’s not Detroit. Detroit’s economy was based on one industry. It was a one trick pony. Chicago’s economy is a lot more diverse than Detroit. Losing an industry leader here would hurt-but not fatally damage Chicago.
The only company that could pull out and cause Chicago to go into a downward spiral is CME. All the side businesses related to $CME add up to a pretty large number, and a lot of ancillary jobs depend on them being there.
Illinois on the other hand is in deep trouble. There aren’t enough economic engines in the entire state to support what politicians did to it. Chicago is the only big one. Other towns in the state aren’t creating wealth at the pace that’s needed to make up the pension/public sector spending deficit. Plus, people are leaving the city of Chicago.
Yesterday, Chicago had it’s bond rating slashed. Illinois has a bad debt rating too. Currently, it stands at A3 with Moody’s. It’s hard to put into words what that actually means for Illinois taxpayers.