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canada pension plan application |
Twelve Canada Pension Plan MythsMYTH #1: The Canada Pension Plan will Go Broke The Canada Pension Plan is not, can not, and will not go broke. The federal government has a process for increasing the Canada Pension Plan contribution rate to ensure that everyone gets Canada Pension Plan. The Canada Pension Plan has been constructed so younger generations will be paying vastly more money than they put into the system and suffering great hardship for the privilege. Young people need not fear that the Canada Pension Plan will collapse, however they do need to fear how much old senior's Canada Pension Plans will cost them. MYTH #2: Challenges to the Canada Pension Plan program are backed by far-right Neo-conservative politics Canadians from all the major parties (Liberal,
NDP, PC, Alliance, Greens) have concerns about Canada Pension Plan.
In simplistic terms; leftists tend to see the issue as one of the
transfer of wealth from the rich to the poor, centrists tend to
see the imbalance of social spending and increased load on business,
right wingers tend to see the issue as one of getting those who
can take care of themselves off of a social safety net thereby freeing
the market to create more prosperity needed for authentic social
programs.
Leftist pro-Canada Pension Plan forces will tend to label Canada Pension Plan reformers as neo-conservatives; Rightist pro-Canada Pension Plan forces will tend to label the same Canada Pension Plan reformers as socialists. This phenomenon highlights the lack of generational thinking in most current political theory. For the most part, politics and thought of the 20th-21st century, has lacked the concept of generational sustainability and justice. MYTH #3: Most senior citizens are poor and therefore need the Canada Pension Plan. In fact, Statistics Canada data shows that the incidence of low income is lower among seniors than for the general population. Since many seniors can turn their homes into income through reverse mortgage and lifetime lease arrangements, the actual potential for low income among seniors is vastly lower that is reported by Statistics Canada. Supporters of the current Canada Pension Plan program put current and future poor seniors at risk by hiding the actual wealth of most seniors and by protecting the universality of the Canada Pension Plan system. MYTH #4:"We seniors paid for young people's education so they have an obligation to support us in our old age." "Generational Accounting" research demonstrates that the
benefits that older Canadians receive far outweighs any support
they have given to younger generations. People who claim this
are ignorant or liars. The older you are the less tax you paid
and the greater benefits you receive. MYTH #5: "Seniors built this country therefore the young owe us." This sad myth reflects a desire to build a one sided balance sheet. Issues of "Generational Accounting" aside, the achievements of past generations are presented without the according failures in order to create a guilt-entitlement relationship. ie the young owe us. This attitude also reflects "Entitlement Patriotism"! This is where one serves ones country to extract a benefit, rather than serving one's country out of duty or gratitude. Many old and young Canadians see the building of Canada as a blessing and/or privilege, rather than a contract. Those who espouse this myth betray their moral poverty. MYTH #6: The Canada Pension Plan has nothing to do with government deficits This argument reflects a profound misunderstanding
of the burden that older generations have place upon younger generations.
Even though the Canada Pension Plan does not receive government
money, it is, howeve,r part of the broken relationship between older
citizens and younger citizens. The Canada Pension Plan and government
deficit spending are related because they reflect a pattern in Canadian
society whereby vast resources are being transferred from the young
to the old. The Canada Pension Plan and deficits are part of the
breakdown in the intergenerational contract/covenant, and symptomatic
of a wider "entitlement ethic" present in Canadian culture.
MYTH #7: The Canada Pension Plan crisis has been manufactured by powerful financial interests Although it is true that powerful financial
interests stand to gain from the changes to Canada Pension Plan
legislation, this does not preclude the fact that thousands of Canadians
across the country have looked at government information and concluded
that the current Canada Pension Plan system in a gross injustice.
This myth is a classic political strategy of silencing debate by
discrediting the opposition. By labeling opponents as "powerful
financial interests", the supporters of the Canada Pension
Plan can silence any debate on the fairness of the Canada Pension
Plan.
MYTH #8: The Canada Pension Plan crisis has been manufactured by the Media This myth, a particular favorite with Monica Townson (Canada Pension Plan advisory board economist), is an attempt to deligitimize the voice of dissent across Canada. The media are, for the most part, responding to the increasing concern that Canadians have about Canada's corrupt social policy. This myth exists because many older Canadians have little understanding of the struggles and hardship younger Canadians have faced and will face in the future due to the current demographic makeup of Canada and past social policy choices. MYTH #9: Pro-Canada Pension Plan interests are looking out for the interests of the YOUNG by protecting Canada Pension Plan Many of the Pro-Canada Pension Plan interests are indeed sincere in believing that they are looking out for the interests of the young by protecting the Canada Pension Plan. They believe that this universal social program must be maintained to provide a strong social safety net for current and future generations. What they fail to realize is that the Canada Pension Plan system has become a vehicle for gross social injustice. The current system takes billions of dollars from younger historically disadvantaged generations and transfers it to wealthier older historically advantaged generations. By forcing the young to pay thousands of dollars into a scheme where they will get only a fraction back is not "looking out for the interests of the young". It is nothing less that intergenerational abuse! MYTH #10: Pro-Canada Pension Plan interests are looking out for the interests of the POOR SENIORS by protecting Canada Pension Plan Forcing the young to pay thousands of dollars into a scheme where they will get only a fraction back in order to transfer wealth to rich and poor seniors alike puts poor seniors at risk of a future reactionary neo-conservative backlash against the entire Canada Pension Plan program. As the population ages and increased pressure is put on younger generations to support the aging population, there is the risk that younger generations might abandon any social concern for the elderly. The Pro-Canada Pension Plan factions, in supporting universality of the Canada Pension Plan system, are irresponsibly risking the loss of these programs for those is real need. They are limiting the capacity of current young people to save for their retirement. MYTH #11: Increases in GDP will offset an aging population. Proponents of this argument say that since
GDP is projected to increase, and government statistics show that
the cost of Canada Pension Plan will only rise from a rate of 5%
to GDP to 8% of GDP, the Canada Pension Plan is still in good health.
Projections of increases in GDP are just projections. They could
be wrong. If Canada entered another period of prolonged recession
or depression, the figures could be quite different. The young are
being asked to trust in economic growth, knowing that if there is
a downturn in the economy then the Canada Pension Plan contribution
rates will again be increased to meet the promises made to older
generations. It is another example of the young paying the price
and/or assuming the risk, while older generations get financial
security. The "GDP percentage increase" argument is also used to
hide the real cost of the Canada Pension Plan program. By naming
the increases in this way it makes the cost increases appear to
be quite manageable. In reality, we are discussing multi-billion
dollar increases and massive per capita increases in Canada Pension
Plan contribution rates for young Canadians. This argument also
fails to consider that younger generations are going to have to,
in the coming decades, reduce government debt. This will undoubtedly
affect GDP negatively.
MYTH #12: Even if we double the Canada Pension Plan rates they will still be lower than other developing countries This statement is true, but is does not reflect the unique economic and demographic situation that Canada is in. Canada has the most pronounced baby boom of any developed country. The United States runs a close second, but does not come close. Comparing Canada to the European situation does not reflect an understanding of political and demographic differences. |