Dismantling the Social Contract

The Disastrous Consequences of Raiding Public Pensions

by DARWIN BOND-GRAHAM

Detroit’s bankruptcy and a high profile lawsuit in San Jose highlight a national effort led by fiscal conservatives to undo the basic promise embodied in public employee pensions – a guaranteed, defined retirement benefit. If they succeed in unraveling public pensions as has been done to retirement benefits offered by the private sector they might also be erasing one of the most robust counter-cyclical infusions of cash into the economy keeping us from the brink of another crisis.

http://www.counterpunch.org/2013/07/30/the-disastrous-consequences-of-raiding-public-pensions/?utm_source=feedly