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Think Detroit.

Most of us have pensions guaranteed by the Pension Benefit Guarantee Corporation, a govt agency. If the company that made the promises fails and is unable to pay, PBGC guarantees a minimum benefit. But for early retirees and people who were promised health insurance and other benefits, often PBGC is quite a bit less than promised.

I think voters everywhere support the idea that PBGC should be fully funded and continue to pay the guaranteed benefits. But what happens if there are mass business failures. Or the benefits promised were overly generous.

I don't think Detroit workers are covered by PBGC. There seems to be not enough assets to pay sums promised. So who bales them out? Feds? State? City taxes? There are no volunteers. So agreements have to be renegotiated. Otherwise, everybody loses.

Once again, govt cannot keep borrowing to pay benefits to its citizens. Those who want benefits have to pay taxes to fund them--one way or another. Some ways are more painless. Tax on manufacturer gets passed on in higher price of products sold. But someone has to pay.

We should stop crying in our beer and get out our wallets. (No Uncle Sugar or Santa Claus will not cover for us.)
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