When most Baby Boomers read the news that Trudeau plans to hike spending across the board in an effort to stimulate the economy they are excited and satisfied with the performance by the fledgling P.M. He is after all trying to make sure that we have continued growth in the next few years and that the economy continues to move forward rather than stagnate and sputter like many other countries around the world. Maybe it is a wee bit early to worry about but realistically he would also like to get re-elected in the next election cycle. So, a little something for everyone as the saying goes.
Create some jobs in Ontario by expanding the transit funding and infrastructure spending, a little something for Alberta while they struggle through the commodities downturn and so on and so on. All fine and dandy for today and for sure you have a bunch of ecstatic baby boomers who can take advantage of all the pork while they still have the chance. But what of tomorrow? Who pays for these deficits that are projected to be run year after year for the foreseeable future? Not the boomers! They will be soaking in the benefits from the C.P.P and OAS that are still at present viable financially. The question is will they still be financially viable when the Millennials get their turn to step up to the bat?
The burdens that our financial system will endure in the next few decades with an aging boomer population will place an enormous strain on the ability of Government to pay for the services and commitments that are already on the books. Adding to that burden by running huge deficits especially when not in a recession is not just fool hardy but borders on irresponsibility.
The burden of these deficits in conjunction with the lowering of the OAS back to 65 from 67 will place massive strain on the Federal budgets for years to come and with the boomer population aging that burden will fall to the next generations in a very big way. Add in the financial costs of the ongoing health care for that aging population and Mr. Trudeau had best take a close look at his policies to ensure that the future of our kids and grandkids is not one of incredible financial strain. We all want our kids to be better off than we were, not saddled with the debt of money that WE borrowed. Just doesn’t seem fair does it.
