Paying out of the wazoo

[Saturn]

"Between 2006 and 2026, the number of seniors is expected to increase to 9.8 million from 4.3 million, the report says. Their share of the population is projected to increase to 21.2 per cent from 13.2 per cent." (Statistics Canada)

2006: Number of seniors - 4.3M. Cost of OAS/GIS - $29B. Health-care costs of treating seniors - $100B. Total - 9.3% of GDP.

2026: Number of seniors - 9.8M. Cost of OAS/GIS - $66B. Health-care costs of treating seniors - $230B. Total - 21.5% of GDP.

Now, I've heard a lot of ideas on how to cut taxes - primarily for the babyboom generation. I've also heard that we should blow our entire surplus on military toys and baby bonuses. Have you any ideas on how to pay for the above?

[Canadian Blue]

A more progressive tax system similar to what they have in most Scandinavian countries.

[August1991]

Now, I've heard a lot of ideas on how to cut taxes - primarily for the babyboom generation. I've also heard that we should blow our entire surplus on military toys and baby bonuses. Have you any ideas on how to pay for the above?

Two ways.

1. Wages/conditions will rise to the point where many baby boomers will not retire.

2. The tax/subsidy structure will change to accomodate this generational change.

Forget the money or nominal variables. Look at the real variables.

[Saturn]

Two ways.

1. Wages/conditions will rise to the point where many baby boomers will not retire.

That, or their jobs will go to China in search of lower wages.

2. The tax/subsidy structure will change to accomodate this generational change.

How so? You're talking as if it's physics "it will change"...

[August1991]

1. Wages/conditions will rise to the point where many baby boomers will not retire.

That, or their jobs will go to China in search of lower wages.

Is that a "race to the bottom" argument?

OMG!!! We'll-all-be-poor-because-the-Chinese-will-work-for-slave-wages-and-how-can-we-compete-with-that.

The Sun delivers light and heat for free. Is sunlight bad for Canadian workers?

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Saturn, I meant that the Canadian economy generates real goods and services every year. In general, it generates more each year because we figure out better ways to do this.

Many soon-to-be retirees expect to have a claim on these goods and services. If the goods and services aren't available, wages (or prices) will change and some potential retirees will choose instead to continue working. The tax/subsidy structure will change to adjust claims on the goods and services available.

The price mechanism copes very well with these kinds of changes.

I think I read the same article as you and what struck me instead is what the article ignored.

In the next 30 years, Canada will become a society of death. Friends, spouses, parents, aunts, uncles, cousins, cultural icons, CBC announcers will die. White Canadians will be surrounded by death, by funerals - in Quebec acutely.

A few years ago, I stood in a village in Russia and reflected on this. It's not depressing. It's simply quiet and slow and routine.