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Email this5:59 pm
November 8, 2009
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As our country maneuvers through dangerous economic times and we count ourselves luckier than most I watch as Canada,s population divides itself into "have" and "have not". The different groups are defined by what types of pension, benefits and job security they have and who will pay for them now and in the future. If a citizen works for a large organization usually connected to the government in some way they will be in the protected "special" group. If a worker happens to be in a regular business competing with global forces they will be in the slowly slipping less well off group. The lucky group have regular raises, great job security, fantastic benefits and the golden defined benefit indexed pension guaranteed never to fail fund. The people on the outside of this special protected place see virtually no raises, stripped benefits, zero job security and the "take your best shot" defined contribution pension bleeding away in the sinking stock market. It is great for the special group to not have a care but isnt it a bit unfair for the other group to have to pay more and more taxes to fund the fantastic compensation packages of the secure group? A government worker, teacher, police, firefighter, hydro worker and so on get to demand and receive year after year increases while the other side is battered into the poor house. How can the average person who is losing more and more income afford to keep paying for the other group? Wont this system eventually collapse as the massive pensions are paid to workers who live longer than ever due to such great health benefits and early age of retirement?
One possible equalizer would be if you arent in the "DB" pension system you could qualify for a larger increase in tax free savings plans? Giving a small advantage back to the little guy... assuming he has any money left to put away? Anyone else see the split happening in our economy? Is this related to the "occupy" movement?
Any thoughts on this?
7:04 am
When I saw the title of your post "systemic extraction of wealth from one group to another" to be honest my first thought was you were going to talk about the systemic transfer of wealth from men to women using the female-biased divorce laws, LOL!!! While this isn't what you talked about, it really is the same in the sense that it's unfair and unjustified, and only a quantum shift in political thinking will rectify it. Don't hold your breath though... the government likes the divorce laws just the way they are because they shift the burden of taking care of women from the state to the individual male taxpayer. Simuilarly, the ranks of government employees are rife with nepotism and political appointments, and you aren't going to see much change there either unless Canada hits the debt wall like Greece, Spain, Portugal and Ireland are about to. As long as a country can still borrow money on the open market to finance these unsustainable DB pension plans, they will continue to do so. Canada may have a ridiculously high level of public debt, but other countries are still willing to buy our bonds. Welcome to the world of fiat currency and crony capitalism ("is there another kind" to quote Jack Nicholson in "A Few Good Men").
8:49 am
The 20th century could be described as a time when respect for the work that people do was negotiated and hard fought for. It has been an evolutionary process. I am a worker who worked for the majority of my career without a pension plan and only lately in a pension plan. I worked away at my RRSP savings when I was without and continue to do so whle I have a pension program. It is unfortunate I think to apportion unfairness almost "blame" to workers who have fought for and achieved employment and retirement security. These are standards that we all should be fightting for for all. I agree that the inequity is there. I would not however want to take away retirement security for the sectors that have it, we must put pressure on government, employers, and financial iinstitutions to put in place similar programs that allow individuals to achieve the same kind of gains.
10:54 am
March 25, 2009
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kilarney said:
As our country maneuvers through dangerous economic times and we count ourselves luckier than most I watch as Canada,s population divides itself into "have" and "have not".
I definately support the occupy movement for the fact that people need to get their voice across (peacefully) about the growing divide and stock market fraud. Canada is no different as these companies are global
Have a great day
11:30 am
May 15, 2007
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Did anyone transfer their money to a credit union for Bank Transfer Day?
1:13 pm
November 8, 2009
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nope.....looks like many are just not that militant.
10:55 am
In agreement with Kilarney.
The Occupy movement (which is largely now a front for unions) is about maintaining that systemic transfer. The Tea Party movement has alot more to do with protecting the non-unionized avg Joe who's taxes go to maintaining the public sector.
Greece is a great example of go after the rich/ceo's/etc (they will move) and then continue pandering to unions/socialism until the system collapses. Then blame everyone but themselves.
Low interest rates are also a tax on savers and a reward for speculators and profilgate governments who love to spend.
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