The January 31st Globe and Mail reports that “Expert advice commissioned by the federal government contradicts Stephen Harper’s warnings that Canada can’t afford the looming bill for Old Age Security payments...research prepared at Ottawa’s request argues Canada’s pension system is in far better shape than the Europeans’, and there’s no need to raise the retirement age. Edward Whitehouse – who researches pension policy on behalf of the Organization for Economic Co-operation and Development and the World Bank – was asked by Ottawa to study and report on how Canada stacks up internationally when it comes to pensions. His conclusion: 'The analysis suggests that Canada does not face major challenges of financial sustainability with its public pension schemes,' and 'there is no pressing financial or fiscal need to increase pension ages in the foreseeable future.' (emphasis added)
“Kevin Milligan, a University of British Columbia economics professor who co-authored (one) of the supporting research papers prepared for Ottawa, is also of the view that there is no OAS crisis. He says the government’s use of statistics showing the cost of OAS will climb from $36.5-billion in 2010 to $108-billion in 2030 is not very meaningful because of the impact of inflation. He notes the rise is less alarming when measured as a percentage of economic growth.
“When the House of Commons finance committee studied pension issues in 2010, Mr. Whitehouse (mentioned above) appeared as a witness and discussed his research. He noted, 'Canada's pension system is looking good on the measures of adequacy. It is also looking good on measures of financial sustainability,'... 'Canada does not face the same financial sustainability problems as many other OECD member countries do, particularly in Europe and among the East Asian countries, Japan and Korea, whose populations are aging most rapidly.'
“At the end of its study, the committee’s final report did not recommend raising the age of eligibility for OAS or reducing benefits. However, a minority report by the committee’s Conservative MPs said payment rates for the OAS and the Guaranteed Income Supplement for seniors should be reviewed.”
Several concerns come to my mind, and not just because I am a pensioner:
1. Why is our current government in Canada not attending to the advice they have requested be provided to them “by experts”?2. Is it not possible that we – the people of Canada – could save a lot of money if we insisted the current government ceased and desisted in undertaking any more studies on which they might make policy decisions?
3. Who elected these goons anyway?
What is the real issue behind Stephen Harper's persistent fear mongering of the Canadian people? It can't just be stupidity, can it?
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