Austerity comes to Canada

I’m going to alter my focus today from global economic issues and zero in on a topic that hits home for all Canadians. The recent mugging of Canadians as a result of the federal government’s clawing back of Old Age Security from 65 to 67 years is something that we should not take lightly.

Let’s not forget the words of Stephen Harper in 2006 just prior to him becoming Prime Minister. “My government will fully preserve the Old Age Security, the Guaranteed Income Supplement and the Canada Pension Plan, and all projected future increases to these programs. And we will build on these commitments.”

So congratulations to us. We have now joined the growing ranks of the UK and European countries that are now feeling the burden of government dictated austerity plans. We also share the fact that this decision has been thrust upon us, without discussion, vote or debate.

Might I be so bold as to offer suggestions of alternative areas to cut government expenses? Let’s start with these ridiculous and endless G7, G8, G20, APEC and North American Summit meetings, which consistently produce no results in bettering the global economy. If these elaborate gatherings were effective, the global economy would not be in the mess that it is in today. Of course these futile meetings come with a price tag of hundreds of millions of dollars. Let’s not forget the 2010 G20 Summit in Toronto, which handed the Canadian tax payer a bill for $1 billion for security alone. This does not even address the other expenses accumulated at this elitist party. What would the Canadian Health Care System look like today if in 2010 we had redirected this $1 billion dollars in to health care funding?

Here’s another idea. Let’s send Will and Kate the multi million dollar bill for their tour last year. Let’s be serious. Who would have an easier time picking up the cheque for this lavish tour? The average Canadian tax payer with an average annual income of $46,000, or the British Royal Family with an estimated net worth in the hundreds of billions of dollars?

I’m getting tired, and I hope I’m not alone, of having our governments consistently cry that they are under funded and that the money has to come from the already over burdened tax payer. As Canadians, we should fully support a level of fair taxation that allows us to live a safe and healthy life within the borders of this country. However, we should oppose with every fiber of our being the indiscriminate waste of public funds that will severely burden our freedom and future health in this country.


The opinions and comments of the preceding article are strictly those of the author and are not necessarily shared by Western Union Business Solutions.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.

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About the Author

Derrick Nicholson is a Currency Strategist. He has been in the industry for the past 20 years, and specializes in mitigating currency risk for companies doing business outside of Canada.

Questions and inquiries can be directed to Derrick at [email protected].


The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.

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