Par Vincent Geloso le 2 septembre 2009
Economists, pundits and public policy makers have been trying to convince us for sometime now that the economy will soon face a very difficult challenge: that of an aging population. The concern is two-fold. As Canada’s new grey-haired population retires, the labour force will shrink thus slowing down economic growth. A recent study by the Caisses Desjardins in Quebec declared that the “growth of potential GDP (the economy’s long-term average growth rate) would drop substantially by 2021”. The problems is that the rising share of Canadians above 65 years old who consume services will rise from 13.7% in 2006 to 23.4% in 2031 according to Statistics Canada. Some provinces like Quebec could get close to 30%. Thus there will be more elders for every worker left. Globe & Mail columnist Jeffrey Simpson concluded from similar studies that “government finances will weaken: few tax revenues, more spending, chronic deficits, more debt. Health-care and education budgets will be squeezed”.
