How pension system destroys our society
The deduction of CPP occurs at our young age, when we need resources most to support our fledgling families. Several years after CPP deductions implemented, Canada’s fertility rate dropped below replacement rate. CPP, a nation wide scheme affecting every working individual, systematically reduces our ability to raise children.
CPP and other deductions are heavy burdens to the young working people. Why were they implemented? Why do they persist so long? They were implemented because the return for early participants were very attractive. When CPP was first introduced in 1966, people only pay 3.6% of their pensionable income. Over the years, the deduction rate has increased to 10.2%. Like any other Ponzi scheme, or pay as you go scheme, early participants get great deals. During this period, the fertility rate in Canada has dropped from 2.75 to 1.60.
At any time, most people over 40 already contribute heavily into CPP. They are better off if the CPP program continues and expands. So there is little public outcry. CPP is not the only program that ushers the long term decline and destruction of our society. However, it is a good example to illustrate how such programs started and why they are difficult (impossible?) to stop.