Student's Sample answers

Reducing the amount given to each pensioners would allow the government more revenue for investment in public services and infrastructures benefitting the economy. Furthermore, reduced government spending in pensions may reduce inflation rates as consumption decreases. Reducing pensions may also encourage people to work longer which could increase government revenue through taxes and may contribute to economic growth.  Lastly, reduced pensions would reduce strains on tax payers.

However, reducing pensions may reduce the disposable income of pensioners resulting in less consumption which leads to lower standard of living for pensioners. Reduced pensions may also put a strain on caretakers  or breadwinners reducing their ability to spend in the economy.

In conclusion, whether or not  a government should reduce the amount of money given to state pensioners depends on the government revenue. if goverment revenue is low, it should reduce pensions in order to reduce its budget deficit.