Often ignored when talking about the Quebec Pension Plan is why the QPP has problems. The actual reason the QPP has problems has to do with the FISCAL mismanagement of the province.
The GOVERNMENT of Quebec is bloated, and if you’re unaware, PUBLIC sector employees DO NOT contribute to the Pensions; they’re CONSUMERS of pensions.
Revenue received to public sector employees are the result of the efforts of the private sector, and when dive deeper into the Quebec economy, you find a lot of government MONOPOLIES that STUNT private sector job growth, leading to fewer dollars flowing into the Quebec Pension, thus making the Pension more reliant on generating RETURNS from the marketplace.
Ofcourse, with National pensions, POLITICS plays a role in investing practices, so in staying true to it’s SOCIALIST roots, the QPP finds itself virtue signalling for profit.
Erin O’Toole: Let Canadian pension funds decide for themselves where to invest
| financialpost.com
People are unfamiliar with how equalization payments work; equalization payments actually go to paying the PUBLIC SECTOR, so solvent Canadian provinces, in my opinion, are financing the QPP, because the Quebec government is in massive perpetual debt.
Current Prime Minister of Canada, Justin Trudeau, and his 50-cent army believe in a BIG GOVERNMENT, and their dedication to this belief leads to record deficits and consumer price inflation, which, if you’re dependent on government WELFARE, isn’t that big of a deal. I think working-class people forget that people on welfare are NOT WORKING and receiving free STUFF, so why would they care about inflation?
Public Sector workers are indeed similar to people on WELFARE as they’re reliant on the PRIVATE sector to provide for their financing. However, you justify this in your own mind is your prerogative; the bottom line is that public servants do not contribute to the Canadian Pension Plan; their entire incomes are reliant on the private sector, but what makes the Federal Government different from the Provincial government is the federal government’s ability to BORROW money from the Bank of Canada.
So, whereas the failures of the QPP are more obvious, the dwindling revenue going to the CPP is more sinister. Justin Trudeau is spending more money than he’s receiving in tax revenue, and the cost of borrowing money is going up.
Where most people get inflation confused in the modern era are regulations. ESG regulations and Carbon Taxes haven’t bankrupted Canada because Justin Trudeau is able to BORROW money from the Bank of Canada. However, Trudeau’s borrowing money to cover up the shortfalls of his terrible fiscal policies is fueling more inefficiencies in the private sector.
For example, if I have to pay more for energy because LEFTISTS in Canada believe in ESG and Carbon taxes, well, either I, as a private business person, go bankrupt, or I raise prices on consumers.
Now, imagine that Justin Trudeau keeps raising the carbon tax; what does that mean economically? Well, unless a viable innovation enters the marketplace, it equates to permanent rampant inflation, which, based on Trudeau’s spending patterns, equates to Trudeau continuing to borrow more money from the Bank of Canada.
What makes Trudeau different from the Chretien Liberals, is that AUSTERITY was part of the Chretien-Paul Martin Liberals’ fiscal policy, whereas it’s not a part of Trudeau’s policy, and what this means, for those of us paying attention is that the CPP is headed for BANKRUPTCY, but under a fiat monetary system, bankruptcy doesn’t happen blatantly it’s an INFLATIONARY bankruptcy.
I have friends from Venezuela who still receive their PENSIONS in Bolivars. Their pensions equate to about $ 5 USD per WEEK, if I’m not mistaken, but they still receive their pensions. You’re hearing calls from some people to LOWER interest rates and debase the loonie.
Interesting times ahead!
