Daily Herald: Speed-camera backlash has towns scraping for cash
Municipalities that installed traffic cameras to boost revenue are scraping for cash to fill budget gaps after complaints by irate drivers forced them to cancel their use.
Nassau County on Long Island ended its program after speed cameras led to the issuance of more than 400,000 tickets in less than two months, opening a $90 million budget hole over the next three years. In Ohio, Dayton is cutting in half its number of police cruisers, and Linden, New Jersey, is shelving plans to hire more cops after both states effectively ended camera systems following a backlash from motorists.
Cameras that monitor speed and red lights have become a quick way to raise revenue for cash-strapped U.S. local governments. While the programs are touted as a way to make roads safer, the perception among drivers is that municipalities are using cameras solely to pump up their coffers, said Bill Seitz, the Ohio lawmaker who led his state’s charge against them.
Chicago Tribune: Gov. Quinn's Medicaid chief to leave 'hardest' job
The director of the Illinois Department of Healthcare and Family Services plans to resign Jan. 9 as part of the transition to Republican Gov.-elect Bruce Rauner’s administration.
Tech Crunch: The Sharing Economy And The Future Of Finance
Banking has gone from somewhere you go to something you do. If we are to believe that the sharing economy will shape our future, banking and all financial services will become something that merely exists in the background, similar to other basic utilities.
I have previously argued that financial services are in danger of becoming a commodity due to the disruption of traditional value networks and business models, as well as lack of trust from the millennial generation. The sharing economy is already reshaping the industry through P2P lending, social payments, crowdfunding and P2P insurance. But if we look at what is going on in other industries and the rest of society, the implications are far more extensive.
Jeremy Rifkin stirred up a great deal of debate with the release of his book The Zero Marginal Cost Society where he states that the capitalist era is passing. The catalyst for this is the widespread adoption of technology and the rise of the Internet of Things. According to Rifkin, automation and sharing services will replace traditional means of production, rendering the marginal cost of products and services close to zero.
WSJ: The Depression That Was Fixed by Doing Nothing
To combat the Great Recession and its long-lingering aftermath, leading central banks have pulled some $10 trillion out of thin air. Governments of the world’s principal economies have rung up almost $20 trillion in deficit spending. We often hear that the authorities have done too little. Perhaps they have done too much.
Not so long ago, the authorities did hardly anything. In response to the severe, little-known economic slump of the early 1920s, they virtually sat on their hands. It is an often forgotten episode that suggests the potential for constructive federal inaction—and underscores the healing power of Adam Smith ’s invisible hand.
Beginning in January 1920, something much worse than a recession blighted the world. The U.S. suffered the steepest plunge in wholesale prices in its history (not even eclipsed by the Great Depression), as well as a 31.6% drop in industrial production and a 46.6% fall in the Dow Jones Industrial Average. Unemployment spiked, and corporate profits plunged.
Chicago Tribune: Gov.-elect Rauner, allies back agenda with $20 million
Gov.-elect Bruce Rauner and two key allies pumped $20 million into the Republican’s campaign fund Wednesday to buttress lawmakers who follow the new chief executive’s as-yet unstated agenda after he takes office in mid-January.
The move is an unprecedented use of personal wealth by an Illinois governor but follows a pattern for Rauner, who as a first-time candidate provided more than $27.5 million in personal funds for his successful 2014 campaign out of a record-setting $67.1 million fund.
Rauner, an equity investor, put $10 million of his personal funds into the latest effort. Ken Griffin, founder and CEO of the Chicago-based hedge fund Citadel, provided $8 million while Richard Uihlein, CEO of Uline Corp., added $2 million, according to state campaign finance reports.
Daily Herald: Nightmare on Chicago Street worth $34,000 deficit, Elgin says
The city of Elgin lost about $34,000 on Nightmare on Chicago Street, but city officials say the event is well worth it because it boosts sales for many business owners while attracting thousands to downtown.
The yearly street fest, which many consider the city’s signature event, was held Oct. 25. It shut down six blocks of downtown and attracted an estimated 12,000 people to a party-like atmosphere of music, apocalyptic props and Halloween-themed booths.
A financial analysis completed by the city this week shows expenses were $134,293 with revenues of $99,907, for a total net loss of $34,386. The 2014 event — for which tickets cost $7 in advance and $10 at the door — cost about $10,000 less than the 2013 edition, said Barb Keselica, the city’s special events and community engagement manager.