Thinking Right’s weekend free-for-all. Pick a topic:
● Incoming Atlanta Mayor Kasim Reed — he takes office Monday — has been handed a 300-page binder identifying problems the outgoing mayor leaves behind. Reed’s designated chief operating officer Peter Aman says, “The shortage of funds is a theme that runs through every department.” That’s a surprise. The binder should have included a Wall Street Journal interview with Mayor Dave Bing titled “Can Detroit Be Saved?” Clue: Yes, but downsized and with payroll costs brought under control. There, union employee benefit costs run 68 percent of base salaries. Keys to Mayor Kasim Reed’s success will be payroll costs. Unless he can gain control of future pension liabilities, he’ll simply be another in that long line of politicians who roll over exploding personnel costs to the next guy. The solution is to immediately close existing pension plans to new employees and start over with defined-contribution, as opposed to defined-benefit,