for pushing the president to call benjamin netanyahu. whether you like benjamin netanyahu or if the president likes benjamin netanyahu or the ayatollah more. >> chicago is in trouble. corruption, pay to play. >> and union to fight changed. >> this policy is added in chicago, is that the next detroit. that is our show tonight.

neil: john: i grew up outside of chicago and spent my weekends they are. that is me when i was a teenager. i didn't pay attention to politics or government then, but my father told me that chicago is a witty that works. and i know that something has gone wrong since then. at the time they were america's second-largest city. since then nearly a million people have left in chicago is now the third biggest city. worse and much more important, it is going broke. this year they will run another multimillion dollar deficit and because of reckless promises, politicians made to government workers the city's pension funds are billions shored and they promise to pay retirees expensive, but they just don't have the money.

>> the mayor promised to put the city's fiscal house in order but that hasn't happened. >> that last speaker is the man who may become the next mayor and i would think that they would have to cut. and it's nuts. but most politicians say that you can't cut pensions that's a promise that we make. and so what should chicago do?

>> well, they ought to be looking for new sources of revenue and how to fund the pension system. it has been underfunded by the city government itself. the city government did not make the corresponding requisite pension requirements and payments. the workers twice a month have always had their paychecks docked and taken out of their pension payments. >> chicago is spending so much that they do not have the money. so how are you going to get this new money? >> i would always talk about how we should be cutting in certain areas. how we should be -- we have an 8 billion-dollar budget. we ought to be looking at what could be fairer for the workers. >> what would you cut? >> i think that there is a number of ways in terms of certain contracts that are given

in who they are given two. as well as how we renegotiate this and how we have made this long-term borrowing as a city government, which i have a poster opposed during my eight years in the city council. john: let's look at this pension debt. a lot of cities have pension debt and here are some of the highest. and boston is 8000 new york is 10000, chicago is 19,000. shouldn't these pensions be trimmed a bit? >> in which way? you know i said it. and unfortunately or fortunately, it does not allow the diminishing of this.

and i'm saying that the corresponding government and the city government did not make the requisite requirement in terms of making a contribution that was required from them. and it is the governments fault that is run by the people. and again we need to look at new sources of revenue on what can be done. twice a month every month outcomes are the pension payment and that is about 11%. >> and city workers do not pay social security and they only have their potential mayor.

>> and you know people, we have high employment here in the city and i bet that we can find people that would be willing to take those same jobs here in the city. 200,000 people moved out of the city and primarily black middle-class and they walked away from the city. john: we have this over a long period of time. population went up until exactly when i was born. then it has gone down ever since. this isn't just because it's a big northern city that you can compare to new york, which isn't doing that well either but new york's population has actually gone up. because of the high taxes and high costs.

>> 660,000 people work in the city, they spent 50 hours a week over here. they go back to their homes wherever they are wisconsin and indiana and it is a small requirement on people that come from the suburbs. i know it's not popular, we have to deal with a situation that everyone can contribute. john: you wouldn't get the money. you have to do a bunch of other stuff. >> i think that there are things that we need to be looking at. and i have been in favor of taking away this with the size

of the city council in half. >> thank you. we appreciate your thoughts and i am here hearing the same stuff, hearing from these democratic politicians and republicans as well. there are platitudes and they don't want to cut anything. on the show we try to figure out what the real facts are and that is why we often go to think tanks like the illinois policy institute. it researches things like how much tax money goes to pensions and bonuses that legislators give themselves and so on. john runs the policy institute. does it make sense? >> yes i hear those kind of comments and i think that this might be delusional. i say that with all due respect. and you know he has not been

respectful for the truth because i went to college in detroit, it was 3.5%, up 1.5% if you live in a city and you know what happened is that everyone move their jobs north of 8-mile road. and the other thing is that he talks about not making social security. the maximum you can get is just over 30,000 dollars. the teachers and municipal workers are getting roughly 1.5 million to $2.1 million each. and the median income is a little over $40000. the people that benefit in the city of chicago are those that are connected to the unions or those who haven't inside political relationship. the only thing he said is that the middle class is abandoning the city because they don't have a connection to unions or government. >> also because we have a lot of stupid rules.

food carts are outlawed, home-based businesses must have no more than one employee and you must get a permit to get a sign to hang on your business. dare put their for a reason. >> a good example is a woman that we just did a story on and at one point in time and play 20 people. but the city comes by and shut her down because they are protecting the established rick and mortar restaurants. john: rahm emanuel is known as a tough guy. he sent to dead fish to someone that he knew. he stabbed the table thing political enemy. and yet in chicago he did some things right. and as nobody can tackle the

pensions? >> yes, that had to be done. and there was a fracture that needed to be done. and it's because of the depopulating city of chicago but he has not taken on this in the unions. and it's because the union workers are the muscle of city government and its not part of government, not part of the union at the front of the line instead of the back of the line. john: what has been happening there is that the politicians get money and then they negotiate a union contract. so it's been described as a money pump that taxpayers give to the public employees and they give back to the public politicians and the goes round and round.

and the pensioners are taking much less. >> they are taking less. once you start to destroy the economic contracts between the private sector and the public sector which is what detroit did in chicago is attempting to do is people leave. you have to have economic opportunity, public safety and good education. chicago is failing on all three of those. one thing that happened during the 2014 gubernatorial election is 241,000 democrats crossed over and voted for the republican. democrats in the city of chicago and illinois are recognizing that this little money pump that you just talked about is failing the average taxpayers. john: will chicago go broke? >> i think that they are already broke and there's a very good chance of this to pass to declare bankruptcy if they don't respond to quit. >> that will be sad. thank you john.

to join this argument, follow me on twitter at stossel. use the hash tag chicago were like my facebook page. so you can post on my wall. coming up next we have more about dead fish rahm

john: rahm emanuel helped elect barack obama. then he became the chief of staff. then he quit the white house to run for the mayor of chicago. he won easily about twice as many votes as his opponent four years later. >> before he was a big shot mayor. john: the president campaigned for him again. incumbent mayors usually get half the vote, then they don't have to face a run. but last month he did not get half the vote and now he faces an election where he's running against this man. >> we are going to win. john: garcia likes to be called chuy garcia. he was little known and so how do you get to the point where you could unseat an incumbent

mayor and a friend of the president two a president who is very popular in chicago to mike flannery covers chicago politics far fox affiliate. this is a surprise. >> not necessarily. it was clear that the mayor was going to have trouble not least because he has made some very powerful enemies in the constellation of chicago politics the big public employee unions and the biggest of all, the most power of all is the chicago teachers union very upset that the mayor closed 50 schools and the move that led to a couple of thousand job cuts. >> never before has a mayor who was already in office for his neck and term not won this runoff? >> that is true. but the system changed a few years ago. this is the first time that we have had a mayor seeking a second term.

john: you mentioned he became very unpopular after closing 50 schools. i think that this reason that it made him so unpopular is the way the mainstream media made it seem like such a radical idea. here is brian williams. >> 30,000 kids will be moved to different schools, most of them black. >> this is an attack on our kids and communities. >> they are more than bigger than any city ever attempted. >> this policy is racist. john: the last speaker is head of the chicago teachers union. very powerful and chicago. >> very powerful, they have over 20,000 active members and thousands of additional retirees and many of them were in the pre-things on to bury 24th. in the first round of voting. thousands are going to be

working on april 7. >> most of those kids went to better schools. >> 93% at the university of chicago. a research group followed up on the skids and 93% ended up at schools that were at least a little bit better than the schools that were closed. john: so he did the right thing and he gets punished for because the unit is just self-interested and mean? >> here's the telling thing is that garcia has been asked a number of times about whether he would reopen any of those schools and most recently he implied earlier that he might reopen some of but then he said no, i'm not going to do that. john: does he have any plan to

solve the pension crisis? >> he says that he's going to get the best minds from all over the world and he will get back to us with a plan after the election. john: he did some good things. he tried to fight the system a little bit. he got rid of the crazy. can you explain this? >> the garbage used to be picked up in the roots that went through each of the 50 wards in the city. the mayor said and he actually adopted a recommendation that the government types have been calling for for decades, and he says that that doesn't make any ends, let's just use a grid system. >> we have a picture, on the left is the old system, every element had that and on the right is the cheaper system. >> saving tens of millions of dollars per year, that is one of the ways in which the structural deficit at city hall has been cut by about three or

$400 million. that's one of the big pieces of it. >> he put a transponder in every snow plow. >> that's right. and he caught some static for that reporters wanted to know about that, why is this snow pile going past this house when nearby there are not any streets >> i give him good points for increasing. i give him points for increasing transparency. there's a lot he should be doing and he has put a surgical data set up on the website portal. it has allowed reporters like me to do a lot more drilling down into the operations of the city than we were previously ever able to do. >> thank you for drilling down. >> coming up next. >> the streets of chicago are deadly and dangero

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>> john: the bullets fly nightly. the streets are deadly and dangerous. >> not as dangerous as detroit that is worse still there eight murders per week one of the more dangerous cities but getting safer say the police. >> we are lowering crime by arresting the right people and not everybody. john: john lott from the crime prevention research center says the mayor has made things worse. >> first of all, the crime numbers where has been a lot of corruption classified crimes that would have been called as murder.

john: understand they fled to the numbers but how do they hide the body? >> it is amazing some of the things they have done. and somebody is beaten up then they die they classify that as battery or they say they died from natural causes even though the police are stunned by that decision they do it time after time. john: crime is down with these reports but probably because it is down everywhere in america. that is the trend for reasons we cannot be certain >> even with that fudging it has gone down more and even in chicago. john: one reason may be a they would say it is a solution chicago 1982 passed

a ban on handguns and they said this will cut into the street shootings. put up the chart of what did happen. so you tell it for the horizontal line is 1982. >> get was going down in the united states. >> it is to a sign relative to other cities natalie did it go down but would rise relative but it is a unique in chicago. with every single time murder rates have gone up. 2 billion crime. >> the problem is the most

law-abiding citizens in it is easier for victims to defend themselves. john: illinois is the last date to allow the concealed carry permits. but the law will make it tough. >> echoes through the permit process like $600 more than any of their state pennsylvania is $20 in indiana is 45. the not only reduces the people but it changes the mix. research finds the most likely victim of violent crime or the poor blacks they cannot afford a $600 to get a permit to protect themselves so they have a permit to to the people who need it the least.

john: that is also andy your call in chicago but in detroit they encourage them to protect themselves. >> when they went they grabbed he said we had a hard enough time to protect you to begin with we have big cats so we advise people for concealed carry permit than they had a 19% drop of robberies. but they it attributed to a good percentage of that so they could defend themselves >> they have crony police? >> more police mean less crime. but even worse where do you put them? you put them where the crime rates are highest but he

closed the detective bureaus of the high crime areas and move the the detectives to the low crime areas. you make promises during the first campaign that he would beef up policing in relatively affluent areas where people contribute more. it is not irrational as far as winning elections but in terms of crime, to even increase if they solve the crime. >> you had a personal experience the. >> it was involved earlier but when i was in chicago at university of chicago i was not the mayor's favorite guy. john: you were critical of the gun rule. >> in one of the suits

against the gunmaker's and was upset by the of bed so he called up the president of the university of chicago and said he'd had these wonderful things then to do irreparable harm. john: then you lost your job. >> yes. >> up next the corruption of chicago pay-to-play. i call it bribery. no chest-beating monologues about engine size, horsepower, or performance.

no anthemic soundtracks to stir the soul. just a ram heavy duty that can carry more weight than any other heavy-duty truck. get more facts at ramtrucks.com

john: the smell of corruption. >> you have connections there is a reason the musical chicago was based in chicago known for corruption

used for political connections to get special deals that you are entitled to public office this has a rich and a long and unfortunate history. >> pay-to-play. >> pay-to-play. >> pay-to-play. john: is that legal? angela mcglowan from open the books of.com that is nothing is done in illinois. what does that mean? >> it is not mess for political corruption what you think of? mobsters al capone going to jail and we think the number one manufactured product description. john: politicians are to make things better the definition of pay-to-play is give campaign cash to get a government contract we have a mayor who pledged.

>> but this happens everywhere ree nee given is its new orleans to grant city contracts and the charlotte mayor 44 months in prison politicians but it is legal contribute to my campaign then rehire your law firm. >> then we study how well bob emanu-el did on his promise. over the last four years we put the companies through the second -- a city of chicago checkbook 600 of the campaign donors were also members of the city to get $7 million in campaign funds to have $2 billion worth of city payments and the shows

from the manual is fully in command of the daily political machine and pay-to-play is still legal in the city. john: it is well worth it to contribute 7 million if you get so much more back. >> return on investment. >> eric is an entrepreneur he founded a couple of companies might think is the investment firm for groupon that was worth $6 billion in 2010 but the lieutenant governors that they needed more taxpayer money 3. $5 million and two days after he announced that he gave rahm emanuel a $100,000 campaign donation. john: but it was a tax break to get them to stay there? >> sure. is the tax break so then he becomes ceo of groupon and with this election cycle he

has given rahm emanuel another donation of cash they are fully legal but the pattern is troubling. john: groupon did not call us back. the boeing corporation is an example of how much corruption cost taxpayers. in order to get the chicago. >> and washington babies. >> $56 million was on the table dallas the 48 million where did they come? of course, chicago the difference of 40 million of a well-run state like texas is a corruption and tax to get a company into illinois. john: united airlines got similar deals they did get back to was. the donations were made by

individuals with is not uncommon for executives to contribute to those they support the have great respect for mayor rahm emanuel many personally support rahm emanuel. >> they own their donations but rahm emanuel issued an executive order to stop pay-to-play to say if you are a city under -- entry cannot give cash. john: when he first announced he was running for mayor he said that. >> government can no longer be the insiders' game serving primarily the lobbyist and well-connected. john: so much for that. on the same day 10 executives in d.c. gave rahm emanuel campaign fund the same amount by the thousand apiece but united did the

same thing 42 executives gave a few thousand before the election. what is the executive order? is bundled cash saved-- in amount twice with city contracts? john: law firms $31,000 in donations. >> this is an interesting example even though they pay out the legal fees they don't have a contract actually with the city so they can get tens of thousands of dollars of political cash and pay on vouchers with no work product it was never designed to end the culture of corruption. >> maybe they're good at it

but we will see who gets the business. >> see you have capital management there is a middle man. it has a contract with the city and i guess the pension dollars to make $443,000 was campaign donations to rahm emanuel. john: you can say they're not doing the job for the shareholders. >> in aldermen has suggested they looked into the violation you cannot manage the pension money to give cash to the public executive in charge of the fund. john: the best way to fight this is transparency. >> our founders recognized that we execute on that had to open the books.com. john: you can get it on the

web site that will stop him now. and look to see where your money is going. coming up all the chicago may go broke there is one bright spot. next. hey, girl. is it crazy that your soccer trophy is talking to you right now? it kinda is. it's as crazy as you not rolling over your old 401k. cue the horns... just harness the confidence it took you to win me and call td ameritrade's rollover consultants. they'll help with the hassle by guiding you through the whole process step by step. and they'll even call your old provider.

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john: chicago have this crime and political corruption pandering politicians promises city workers to suck so much taxpayer money away there is little left like infrastructure and education. chicago become the next at detroit but there is some good this to support charter schools and there are more now than they are better. some parents now say my kids are learning more. >> you think the teachers are better teachers? to make guests. they give the kids the attention they need. john: why there are 20,000 kids on the charter school reading lists in chicago it would be good if they had more but sally from the goldwater institute says one out of five high-school students now attend a charter school.

they are better? >> there is no pretending that every charter school where every kid is above average but when parents are given choices and teachers and administrators are given the freedom to innovate innovate, good things happen and. by and large they all perform those that report on reading and math at every grade level. john: when they don't they shrivel and don't continue and the good ones open other branches. >> bad schools still some open they get close down that is debt deal they made with a government that is the good deal especially in chicago were omitted to percent of the kids to graduate from the district one school go to college per precontract that with charter schools where 70 percent continue. john: first of all, in the charter school there are more students 20% vs.

3.6 percent in new york. mentioning the graduation rate with a traditional public schools with college enrollment is up 50 percent. >> what is fascinating look at that percentage of the student population those that come from a low income family a student population where nearly one in understand our low income and 70% continue to colleges mind blowing. nationwide only 50 percent go on. john: it is not great they go they get ripped off. >> but they should have that choice. >> what happens? >> if chuy wins they are

sunk he said he will put a moratorium on the charter schools if he is elected much like the mayor in in new york city pledged during his campaign and he was the subject of a robust and heated debate. john: because the parents say i liked the school and he has backed down. >> some schools in chicago there are five kids for every available seat applying if parents did not like that they would not have such a demand. john: and urban prep 100% college acceptance rate. >> and amazing story. 100 percent of the students who attend are african-american boys. 100 percent of those students go on to college. across the country 30 percent of african-american boys continue it is an amazing success story that needs to

be continued if you hear that the mayor wants to shut that down then what is going on with that? john: they are on the take with the union. one more unbelievable sneaky and led - - deceitful thing that the mayor got

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increased blood pressure, common cold symptoms, urinary tract infection, and headache. take charge by talking to your doctor about your oab symptoms and myrbetriq. find out if you can get your first prescription at no cost by visiting myrbetriq.com john: when i was a kid sailing my belt around chicago the highlight was a

little airport is seeking an intimate connection and sometimes the planes would fly over me and that was exciting some even after i left i would pay attention when years later the mayor said but tear down the airport to build the park here is the mayor with his proposed park. doesn't deal kerrigan? he was that is when the legislature did not approve the plan he agreed to keep it open another 25 years but instead of doing that in the middle of the night had city construction crews destroy the runway those our couches and the runways surface. he did not respect the law or even give the faa the required 30 days' notice in air-traffic control had to defer the inbound flights also did not warrant the orders of the airplanes the next morning he said to do

this any other way would have been a contentious he avoided court battles and acting on his own. he did but the reason we have laws is so politicians cannot do whatever they want butted chicago they think they are special actually all politicians think they are special but chicagos are unusually arrogant and now after effort - - 84 years my old city is on the road to bankruptcy. i've not moving back soon except one thing gives me hope that illinois has a new governor who so far is not a crook. that is not a standard but we're talking illinois. five that of the last nine governors went to jail. running for office without promising raises and absurd pensions.

>> now was the time to start on a responsible path after years of financial recklessness. >> he actually proposes to cut spending to balance the budget. >> saying no is not popular but it is now or never for illinois. without reforms proposed in this budget nearly $0.25 of every tax dollar will continue going into the broken pension system that is unfair and unsustainable. [applause] >> this is the democratic controlled legislature. will they change? i doubt it. i suspect that chicago and illinois like greece and cuba will soon be will models of failure maybe we can learn something. maybe. maybe politicians will learn something but they usually

don't. that is our show. see you next week with a new episode of on the new time slot. friday. fox business. of you said the you thought was responsible for that call. have a great weekend. neil: i and neil cavuto. the daughter boarding last night on this show was meant to scare investors, they had a funny way of showing it. markets raising even after ronald reagan and former budget guy was predicting a huge day of reckoning. within a few of you little anc not over his stockman's assessment of the ticking debt bomb but how he says we got to fix it now. >> we have to have sweeping middle-class entitlement reform, a dramatic cutback in defense. neil: would you raise taxes? >> i would raise taxes in conjunction with doing everything else. neil: you have cut all that out all those people losing social