July 24 (Bloomberg) -- Detroit has become the largest U.S.
city to crumble under the weight of huge, unfunded public
employee benefits such as pensions and retirement health care.
It is unlikely to be the last: Recent bond-rating downgrades in
Chicago and Cincinnati indicate that more municipalities could
be forced to seek bankruptcy protection.
While it is too late to save Detroit, it may still be
possible to prevent similar disasters from unfolding elsewhere
by ending our long-standing practice of putting state and local
governments in charge of pensions.
