Because most public and private retirement accounts assumed that the growth would occur, thus it was okay to promise themselves a pension and health package that was very, very generous based on lots of younger people paying X%.

They literally are pyramid schemas which require a larger group of workers to support. In other words, they calculated something like 'When I'm 63, there will be 4 workers available for each retiree, and each worker can afford to pay $15K a year in taxes to support that $60K / year pension.'

Well, it turns out there are only 3 workers for each retiree. So either the workers need to be taxed $20K each to support this pensioner, or the pensioner has to take a 25% cut.

https://www.reddit.com/r/badeconomics/comments/dr74i0/life_i...