How Angry Would They Be If They Understood

| 24 Comments

woman.jpgThe rollback of the age of eligibility for Old Age Security piles another 88 Billion dollars onto the younger generation, who according to a new CD Howe Institute study are already facing higher taxes, fewer services, responsibility for unfunded public sector pensions, MP's pensions and of course Justin & Bill's ever increasing overspending.


24 Comments

They just don't care:

https://kek.gg/i/32NB8q.jpg

Who Cares?

They voted lieberal, the budget will balance it self

I predict underfunded public pensions will be the coup de grace for taxpayers. They will already be bled dry by ever increasing carbon pricing, property tax hikes and higher sales taxes, bigger CPP deductions. Healthcare spending will skyrocket as Boomers age so expect brand new healthcare fees and more out of pocket expenses. But it will be the unfunded public pensions that topples the pyramid scheme.

I've mentioned before that Saskatchewan will feel substantially less pain from public pension liabilities. Only healthcare workers are on the "old plan" of defined benefits. The teachers are too but they decided to run and fund it themselves so taxpayers should not be on the hook to cover shortfalls. All other provincial government employees have been in the "new plan", defined contribution, since 1979. Taxpayer payments to retirees on the old plan peaks in 2021 and then drops quite rapidly. If the province can keep taxes and energy costs reasonable then they might be able to attract new residents and companies who are fleeing high tax provinces.

There would be no problem if the CCP and Old Age Pension plans were managed properly with strict guidelines. The government needs to stop raiding our piggy bank. This is scary stuff to know that the Feds are investing our CPP funds in infrastructure programs! Like, what's wrong with RBC, TD and CIBC?? They'll be here long after Justin!!

One of many articles on the topic!

http://www.princegeorgecitizen.com/opinion/editorial/liberals-robbing-cpp-fund-1.233659

The younger generation, including my own son, voted for prince hair. They deserve their future.
Captcha: schaden
Seems fitting

I know younger people who voted for Mr. Dressup selfie socks just for legalizing pot.They get whatever they deserve.

No unfunded or underfunded public pension obligation will ever go into default. They will all become funded with more public monies.

This is the rather brilliant response by government to our failure to provide for them all of the tax money they desire. They will simply spend current dollars as they see fit, and load up on public debt for whatever else they want. This gets easier as government employment accounts for ever higher proportions of total employment. Every public employee with a pension becomes another vote for making unfunded contractual promises.

This cannot change without a thirty-year effort to shrink government employment, which is not going to happen.

In other words, right now, things are the best they're ever going to be in our lifetimes.

The baby boomers have spent the wealth of at least three generations in one, yet still want more. Boomers could leave high school, get a job, buy a house at 1 or 2 times their gross annual, lower pension contributions, better pension payout, lower health care costs, with better access, etc, etc, etc.

Their only response is: I worked hard for it so I deserve. Yeah, right - a farm dog works hard too but we shoot it when it gets too old.

Working hard does NOT give you the right to steal from future generations, particularly as they had no say in how the money was spent.

There is only way out of the current pension mess but no politician will touch it. All public pensions need an immediate cap and all must be means tested. In other words, if you have a wealth of more than X amount you don't get any pension, No CPP, no teacher pension, no healthcare pension, nothing.

You were dumb enough to believe that what you were promised by gov't was in fact realisable. It was not, and is not. That is your lesson to learn, not your kids and not your grandkids.

However, this lesson will not be learned. The pain for the future will be immense

and then they print currency and pay the debt with devalued dollars and prices will go up and people will wonder WTF happened.

There are two scenarios where governments can continue to survive with poor financial skills. The first (presently in place) is very low interest rates. This let's the government continue to borrow with a low interest penalty. The second is the inflation of the dollar to effectively devalue the debt the government has committed to. This happened in the 1970s and led to interest rates greater than 10%.

There needs to be a catalyst for interest rates to rise significantly. The most likely will be the massive transition of boomers from savers to spenders. Right now, boomers are squirreling away massive amounts of money. By 2023 there will be more boomers withdrawing their savings for retirement spending and this spending will be more modest than when they were working. This will go on for about 20 years.

The first people to be effected will be those retiring to a defined contribution plan. These people will have a fixed amount of money for retirement. Inflation will erode much of the value of these plans. Then the defined benefit pensioners will start feeling pain as the governments will not be able to increase their benefits to compensate for the erosion in the value of the dollar. Eventually you will be paying 25% HST on everything you buy.

"By 2023 there will be more boomers withdrawing their savings".

By this I meant more boomers will be in withdrawal mode compared to savings mode. Changes in our economy are affected by trends. The boomer savings trend has resulted in low interest rates because there is so much capital available chasing too little investment. The result is a drop in interest rates which is the mechanism of attracting capital.

But this will change over the next 6 years as the peak of the boomers (1958-1962) retire and start living off their savings. The eventual drop in available capital will lead to higher interest rates. Millennials will be faced with 8% interest rates on their GICs and 11% interest rates on their mortgages.

Those who voted for governments that deficit spend now (during periods of economic growth) to artificially inflate our living standard are committing all of us to higher taxes in the future. Any future government will be forced to support these obligations. The only flexibility will be how taxation is distributed, whether through corporate, personal or consumption tax. If you look at what the government can do (other than reducing spending which isn't even being considered as an option), it can't increase corporate taxes (because companies are already leaving high tax jurisdictions). Personal taxes increases are probably not likely either, given our current high tax rates (squeezing a dry sponge for water). What is left are increases in consumption taxes and other "new" taxes, such as the carbon tax.

On reflection;"how mad would they be if they understood"?
Very angry indeed.
This is why we ,our government, spends billions on Public Education and Public Broadcasting.
We spend a huge amount of money and time to ensure the next generations do not understand how shabbily we have betrayed them.
Sold into slavery from birth,the next generation will need to free themselves of our "help" or be ground into oblivion.

The Kleptocracy has never been shy about their solution, inflate,extort and euthanize.
Todays dollar is a whole lot less than yesterdays.
Tomorrows will be on par with Zimbabwe.


We are all going to be billionaires.
With no assets.
Vote NDP/Liberal.

Math is hard for Social Science grads.

Pearson campaigned during the election promising "60 Days of Decision" and supported the Bomarc surface-to-air missile program. Pearson never had a majority in the Canadian House of Commons, but he brought in many of Canada's major updated social programs, including universal health care, the Canada Pension Plan, and Canada Student Loans..

Baby Boomers did not vote in any great numbers when Pearson was elected. He was elected primarily by the previous generations.
Pearson was not a Baby Boomer, neither were his top ministers Pierre Trudeau, John Turner, and Jean Chretien.(all subsequent Prime ministers)

Boomers paid back their student loans.
The greatest annual budget expenditure by the Canadian government is and has been universal health care since it was instituted.

"How Angry Would They Be If They Understood..."

Frankly: to Hell with them.

I have yet to see a mass demonstration of young people anywhere demanding that the government stop spending on social welfare programmes and racking up long-term deficits.

They want overspending and "social justice" handouts so they can inherit the debt that comes with them too.

Ahh, Froggie, I mean Frenchie: Regarding your silly statement
"if you have a wealth of more than X amount you don't get any pension, No CPP, no teacher pension, no healthcare pension, nothing"
The CPP is something we pay premiums for. Same for the pensions of teachers, they pay into it. I get a workplace pension from a corporation and you are saying that if I won the lottery, let's say, I lose my pension? Hands off except maybe for the teachers pensions that are not sustainable and something needs to be done to curtail the excessively expensive safeguards it has. If you were just talking about the OAS which is fully financed by taxes, it already has Blvdrestrictions that has a claw back depending on income. You need to rethink your position.

Dear Gen X whiner

It wasn’t baby boomers that escalated government debt geometrically. It was the Marxist Trudeau One who grew government, with Mulroney following up and adding on top. While Mulroney did take steps to change the trend, he didn’t take strong steps to cut deficits, because, Quebec and politics.

Blame Morontariowe and Quebec for re-electing reckless Liberal governments.

By the way, if you continue to re-elect Liberal, or NDP governments, you deserve your future pain. Those of us entering retirement within the next 10 years will be bystanders to the carnage brought on by PM Shiny Socks

Oz:
"Pearson never had a majority in the Canadian House of Commons, but he brought in many of Canada's major updated social programs, including universal health care, the Canada Pension Plan, and Canada Student Loans.."

Pearson did introduce a form of national health insurance in 1966, but it was a 50/50 provincial-fed cooperative arrangement that was still an insurance plan, ie. based on citizen premiums.
The more authoritarian universal plan was introduced by (who else) P Trudeau in 1983, The Canada Health Act. This eventually did away with individual premiums and SC decisions later caused the plan to be applicable to anyone in the world able to transport their body to Canadian airports.

That Canada should be responsible for world wide health care is the ruinous aspect of the current system and one future generations will find impossible to implement; it already is close to that now.

"Working hard does NOT give you the right to steal from future generations..."

That sort of rhetoric might seem impressive at first but, at the risk of stating the blazingly obvious, you cannot steal from people who don't exist.

The best we can ever do is deal with the issues of the present as they confront us now, in the hope that we have made the right decisions for future generations. But there's no guarantee they will be the right decisions because, again, we just cannot know what future generations will want.

History as usual is ambivalent on the matter; it suggests that the legacy of one generation might or might not always be appreciated by the succeeding ones.

"..Their only response is: I worked hard for it so I deserve. Yeah, right - a farm dog works hard too but we shoot it when it gets too old..."

Better bring some friends sonny...lots of them. I not only worked hard, paid min $ 750k-$1,000,000 just in Income/Sales taxes over 40 yrs to Greedy spendthrift LIBERAL Politicians, voted in by arrogant snot nosed little leftist goophs just like you...capiche...?? oh yea, and I served to boot.

What little I get back these days, I don't apologize for whatsoever - no to you or anyone else.

Sooooo, U can kindly piss off and stay that way... you want me out of the way..?? come on down....be more than glad to entertain your desire.

As expected, the only answer from the boomers is to claim it wasn't their fault, they worked for it, close their eyes to the permanent damage they have inflicted on the west and keep on sucking at the teat as long as they possibly can. The topper is calling me a lefty; talk about people not being able to comprehend. I detest the situation precisely because one generation used gov't to steal from multiple successive generations.

As for legacy not being appreciated, trust me - the boomer legacy will be that of one of the most selfish & destructive generations the west has ever seen and will lead to the downfall of the west. There are many deadly things that arose under their watch. The most deadly of them all is the permanent debt which enslaves.

"As for legacy not being appreciated, trust me - the boomer legacy will be that of one of the most selfish & destructive generations the west has ever seen and will lead to the downfall of the west."

Not the generation of Germans who were led down the garden path into WWII, oh no, but the Boomers - the Boomers - are "one of the most selfish & destructive generations the west has ever seen"?

Come off it now.

Good example, the bad ones in germany were countered by good people of that generation in UK, US, Canada, etc.

Nowadays, boomers can't even admit the problems they are making, or speak out against it, let alone make a financial sacrifce to counter, and heaven forbid have to fight to stop it.

The WWII generation and the boomer generation, the good and the bad- if we have history books 500 years from now it should be interesting to read how the sacrifices of one so quickly led to the selfishness of the next.

Captcha: ends here

Seems appropriate

full disclosure:

I'm one of the boomers.

the ONLY reason I have what I have is a ginormous work ethic expressed by ALL my siblings, and in my case eschewing the drink. I invested what I made in tangible and semi-permanent things.

try this: early 70s I'm earning a princely buck 80 an hour operating the 10-20 MILIION dollar mainframes at my employer the university. I use THAT as a foot in the door to earning my comp sci degree and run with it.

over the years, watching financial shenanigans by the likes of brian mulruin and his ilk, I decide wtf, why not do the same thing to make up for the shyt wages earlier in my working career. THAT is the justification I use to milk the present pension system every way till sunday. 'they all do it'. absolutely !!! I learned the lesson well !!!

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  • historybuff: full disclosure: I'm one of the boomers. the ONLY reason read more
  • Frenchie77: Good example, the bad ones in germany were countered by read more
  • JJM: "As for legacy not being appreciated, trust me - the read more
  • Frenchie77: As expected, the only answer from the boomers is to read more
  • steakman: "..Their only response is: I worked hard for it so read more
  • JJM: "Working hard does NOT give you the right to steal read more
  • Martin: Oz: "Pearson never had a majority in the Canadian House read more
  • DanBC: Dear Gen X whiner It wasn’t baby boomers that escalated read more
  • Canuckguy: Ahh, Froggie, I mean Frenchie: Regarding your silly statement "if read more
  • JJM: "How Angry Would They Be If They Understood..." Frankly: to read more