For people complaining that CPP should be an entitlement, they seemed to have forgotten that CPP started off in 1966 as a pay as you go plan. My parents voted for this plan. Do you know why? My father got full CPP pension after paying for only 10 years.
This is exactly how what we, the boomer generation, have been voting. We have voted for others people's money to be spent. This includes all sorts of social programs, like health care and OAS. We are highly in debt and putting this debt on future generations. We seemed to have voted for things that we do not wish to pay for.
I know that people say let the rich pay, but I doubt if there is enough money in the world to satisfy our wants. We have taxes that are too high and debt that is too high. Both slow down economies. So we could end up with little or no growth in our economy. Are our children going to be able to make enough money to pay off our debts? I cannot see this ending well.
CPP was only fixed in 2000 to be better at covering future liabilities by increasing the amount employees and employers must pay into the plan. At that time the message was that CPP was fixed for the next 20 years. However, I must admit that any report I have currently seen, seems to imply that CPP is solvent for now and needs no fixes in the near term.
Jamie Griff's rant against the CPP is all wrong. Yes, we have paid into CPP, but the question is have we paid enough into it? Certainly the first people to benefit from it did not. And, please note that my father did not talk about the great deal he got with CPP, instead he felt he deserved the pension because he had paid CPP premiums.
On my other blog I am today writing about TransCanada Corp (TSX-TRP, NYSE-TRP) ...continue...
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