One of the aspects of the Detroit bankruptcy is this:
…shrinking…[Detroit]’s work force to the point where employee contributions can’t keep pace with the needs of current pension recipients. The city has just 9,700 workers but 21,000 retirees drawing benefits.
That has meant larger and larger payments by the city to keep the funds solvent.
This is the future of Social Security and Medicare, absent privatization of each and serious immigration reform (which the Senate bill is not). The outcome nationally, since we don’t get to declare bankruptcy (we can only welch on our debts by repudiating them or by repaying with debased money), is higher taxes and more debt. And national failure.