Behold the Church of the Free Market in all its glory. Looks like the NP let the intern, possibly a first year economics undergrad, write today's editorial. I've always found it interesting that the National Post is considered an expert on financial and economic issues. In this case they take aim at the rather intelligent and necessary idea of increasing CPP contributions, something all the major parties seem to agree needs to be done. But not those cute, cuddly, libertarians. No, according to the National Post the CPP is baaaaaaad.
Even with oscillations in the market, over time private retirement plans produce post-employment incomes double or more those of public pensions. If workers were able to take the more than $3,000 they and their employers pay into CPP on their behalf each year and invest it in a conservative private fund, at the end of their working lives their private pension income would be nearly $26,000 annually. With CPP, the same $3,600 taken every year yields annual benefits of only around $10,000 at age 65.
Well at least if the NP finally dies at some point in the future the editors can get jobs as mutual fund salesmen. You don't need any financial planning accreditation to figure out the problem with the above paragraph.
He could start by increasing the amount workers can shield in their RRSPs.
Yup. Higher RRSP contribution limits. You remember RRSPs don't you? That's that measly savings account you have that you're sometimes able to chuck a toonie or two into after paying your daycare bill, your hydro bill, your mortgage, your car payment, etc., etc. What? You haven't been maxing out your contributions? Yeah, neither have at least another quarter of the population.
Have no fear though, the NP assures you that trickle down economics will do the trick. Throw your money into, say, Nortel. Then, according to the NP, jobs will be created, resulting in more wealth for everyone!!! Hooray!!!
Yet it's not just the NP that's talking this way. A google news search will give you a bunch of hits from the similarly brain damaged about the evils of government pension plans. The idiots are out in force on this issue, and it's one that's too important to ignore.