As far as I understand, pension and social security come from different sources of funding. Still, I find certain similarities between cutting pension in Detroit to pay off debt and increasing retirement age to help reduce the budget deficit (as suggested by our class yesterday).
http://www.nytimes.com/2014/04/16/us/a-deal-on-pensions-lifts-hopes-in-detroit.html?ref=business
Do you think citizens of Detroit, 20,000 retirees and 10,000 employees, will vote for the deal?
i don't think most of the retirees and employees would agree. this means that some of their money is going towards the city's bailout. in this deal, some people are losing and some are winning. the fact that police officers and fire fighters pensions will not be greatly affected by this seems very problematic to me. if a pension cut is going to be put into place, i think that cut should be the same across borders with no exceptions.
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