Equalization Payments And If Alberta Leaves The CPP, What Happens to The Quebec Pension Plan: 420,000 Quebec public sector workers are on strike today, affecting schools and hospitals – November 6, 2023
It’s hard for me to take any public sector strike in Quebec seriously because of the MASSIVE debt load and financial shortfall their PUBLIC SECTOR already has.
Equalization payments go towards the SOLVENCY of a province’s public sector, namely it’s public sector workers which deliver public services and these public sector workers pay towards the Canadian Pension Plan or the Quebec Pension Plan.
Alberta is doesn’t require equalization payments as it’s PUBLIC sector is rather small in comparison to the PUBLIC SECTORS of other provinces. Alberta also has fewer crown corporations(State Owned Enterprises) than other provinces.
Canadian Equalization Payment Numbers in 2023
- Quebec: $14 billion
- Manitoba: $3.5 billion
- Nova Scotia: $2.8 billion
- New Brunswick: $2.6 billion
- Prince Edward Island: $561 million
- Ontario: $421 million
Crown Corporations typically operate has price controls, not only does Quebec have more crown corporations, than Alberta you also have to factor in The Federation of Quebec Maple Syrup Producers, which LEGALLY acts as a barrier to entry to prevent any new company in that industry from being profitable in their province.
What this equates to is a shortfall in revenue for the government of Quebec, which also contributes to QPP. Now, for Quebecers they often do not have to think about the solvency of their Pension, because Equalization Payments cover their PUBLIC sector shortfalls.
However, if Alberta leaves the CPP, this issue of financing Quebec’s bloated public sector becomes more problematic, because the bloat public sectors in English speaking provinces will need to shrink in order for the Canadian federal government to finance their public sectors which contribute to the CPP.
It’s clear as day when to see when I look at the numbers that the rest of Canada, is in serious trouble, if Alberta leaves the CPP, why? Because equalization are far more important to PENSIONS than most people comprehend.
Below is the Trudeau popularity tracker by Angus Reid; if the data does not show up below, you can click the link provided or search for “Trudeau popularity in Google”.
Public servants contribute to the CPP, however the money they earn is RECYCLED money from the money generated from Private Sector. The Federal Government is running a DEFICIT, meaning that the Federal government and it’s EMPLOYEES are INSOLVENT, why are they insolvent, well, one could argue it’s because of their BLOAT PAYCHECKS.
When this Public Sector Strike in Quebec is SUCCESSFUL, the public servants will see a rise in their wages, and Quebec’s need for Equalization payments will be higher than $14 Billion, meaning that QPP benefits will also rise, if this doesn’t make any sense to you now, don’t worry, it will make a lot more sense if Alberta is SUCCESSFUL in leaving the CPP.
Interesting times ahead!