Passage Analysis
• Editorial: Our city's public transportation agency is facing a budget shortfall.
o The editorial states that the city’s public transportation agency is confronted by a budget shortfall.
• The fastest growing part of the budget has been employee retirement benefits, which are exceptionally generous.
o Expenditure due to employee retirement benefits has been growing faster than all other parts of the agency’s budget..
o The retirement benefits provided by the agency to its employees are unusually generous.
• Unless the budget shortfall is resolved, transportation service will be cut, and many transportation employees will lose their jobs.
o If a solution is not devised for the budget shortfall, as a consequence transportation service will be terminated.
o Loss of employment for many employees in the agency will follow if the shortfall is not resolved.
• Thus, it would be in the employees' best interest for their union to accept cuts in retirement benefits.
o The editorial judges that if the union of workers in the agency choose to accept a cut on retirement benefits, that will be better for the employees.
o We can infer that keeping the workers’ jobs is possibly more important in the long term.
Conclusion: It would be in the employees’ best interest for their union to accept cuts in retirement benefits.Question Stem AnalysisWe are required to identify the assumption required for the editorial’s argument to be valid.
Pre-thinking
Falsification QuestionIn what scenario is it possible that it would not be in the employees’ best interest for their union to accept cuts in retirement benefits?
Given that
• The public transportation agency is facing a budget shortfall.
• The employee retirement benefits part is the fastest growing portion of the agency’s budget.
• The employee retirement benefits are exceptionally generous.
• If the budget shortfall is not resolved, service will be cut, and many employees will lose their jobs.
Thought ProcessThe editorial suggests that it is best for the employees’ union to accept a cut in their retirement benefits because, if this step is not taken, drastic measures like cutting services will have to be followed to overcome the budget deficit. We can infer that this will lead to loss of jobs for current employees. It is a known fact that the retirement benefits for the agency’s employees are unusually generous and this part of the budget is the one growing fastest. Notice that the editorial does not say it is a large part of the budget at present. The main purpose of the measures discussed in the passage is to resolve the budget shortfall, so it will not be in the best interest of the workers if any other step that does not affect their employment could be taken instead of cutting their retirement benefits. Also, if the union agrees with the cut and this measure still does not suffice to resolve the issue (this is possible since we do not know how big the expense is currently), leading to loss of jobs for many employees, the workers are hard hit twice. This situation will not be in the workers’ best interest either.
Falsification condition#1What if the cut in employee retirement benefits is not enough to resolve the budget shortfall and the services are cut even after that, leading to loss of employment along with the cut in retirement benefits?
In that case the facts hold true, but the conclusion breaks down.
Assumption#1The cut in retirement benefits will lead to the resolution of the budget shortfall of the public transportation agency.
Falsification condition#2The step of cutting employee retirement benefits will be in the best interest of the workers only when it is the only way the situation can be resolved without loss of jobs. What if it is not? Here also, the conclusion breaks down.
Assumption#2The only method possible to resolve the budget shortfall without loss of employment of many workers is by cutting employee retirement benefits.
Answer Choice Analysis
(A) The transportation employees' union should not accept cuts in retirement benefits if doing so would not be in the employees' best interest.
INCORRECTThis statement is just the contrapositive version of the conclusion and brings no new information. Hence it cannot be an assumption
(B) The only feasible way for the agency to resolve the budget shortfall would involve cutting transportation service and eliminating jobs.
INCORRECTThis statement is not consistent with our pre-thinking. Cutting retirement benefits must be a feasible way to resolve the issue for the conclusion to hold. Hence it is not the correct choice.
(C) Other things being equal, it is in the transportation employees' interest to have exceptionally generous retirement benefits.
INCORRECTThis assumption is not necessary for the editorial’s conclusion to hold. Hence it is an incorrect choice.
(D) Cutting the retirement benefits would help resolve the agency's budget shortfall.
CORRECTThis is in line with our pre-thought assumption-1 and hence the correct choice.
(E) The transportation employees' union will not accept cuts in retirement benefits if doing so will not allow more transportation employees to keep their jobs.
INCORRECTThis statement is not regarding the context of the conclusion, i.e. whether accepting the cut in retirement benefits is in the best interest of the employees or not. Hence this option is out of the scope of the argument. Therefore, it is an incorrect choice.