A Lesson from the Wreckage in Detroit

In their attempts to turn the Detroit bankruptcy into a teachable moment, many commentators have focused on pensions, and rightly so. Detroit’s billions in pension debt are a driving cause of its insolvency and inability to provide basic services. Should he succeed in his plan to cut pensions in bankruptcy, Emergency Manager Kevyn Orr would set a powerful precedent for other cities in a similar position.

But the focus on pensions has eclipsed a more promising target for reform: the health care benefits promised to retirees.