The government has just weeks to decide whether to meet a $16 billion demand from the Bloc Québécois to postpone elections for several more months, a provision that could conflict with the Liberal Party’s political and financial plans. .
The Liberal Party spent much of last year building its political strategy around feelings of inequity among Millennial and Gen Z Canadians who feel their work is not rewarded in the same way as previous generations. I’ve spent it.
Prime Minister Justin Trudeau has touted policies aimed at “fairness for all generations,” but EU countries have until October 29 to issue a private member’s bill to strengthen retirement security for people under 75. has given the go-ahead for spending on
If the government does not support the bill by then, Bloc leader Yves-François Blanchet said he would enter talks with other parties to bring down the minority Liberal government by the new year.
“It’s not clear to me how the Trudeau Liberals would benefit politically by increasing spending on seniors,” said Andrew Perez, Liberal strategist at Perez Strategies.
Perez said this seems to be the only demographic the Liberals can still compete in.
Young voters who helped Prime Minister Trudeau’s approval ratings soar in 2015 appear to have moved to the right to support Conservative leader Pierre Poièvre, according to polls.
“Historically, liberals have always been ahead of conservatives among younger generations, so it’s quite anathema to the liberal brand and it’s quite shocking to see these numbers. That’s true,” he said.
Tyler Meredith, former chief economic advisor to Prime Minister Trudeau and two finance ministers and founding partner of the policy advisory firm Meredith, Bessencourt & Phillips, said no party should stand up in the House of Commons to push for more funding for seniors. He said it would be difficult to argue against it. .
“The challenge is implementation and cost,” he said.
The Liberal government has increased superannuation benefits for people over 75 in 2022, with the intention of targeting the most vulnerable seniors.
Congressional budget officials estimated it would cost an additional $16 billion over five years to strengthen retirement security for those under 75.
For the Liberals, it would be an additional $16 billion in deficit spending.
Mr Meredith said it would be difficult to add this to the budget on top of housing costs and other issues the government wants to address ahead of the next election.
“I don’t know if it’s necessarily generationally unfair. I’m just saying I don’t know if it’s the most effective use of money,” he said.
Finance Minister Chrystia Freeland last year promised new fiscal guardrails aimed at reining in spending and deficits. The move comes amid growing pressure to ensure that federal spending does not impede the Bank of Canada’s ability to curb inflation.
“When it comes to further support for seniors, we are in good discussions with both the bloc and the NDP on all possible economic measures,” Freeland said last week.
Elderly benefits are a major expense for the federal government and have increased significantly over the past year as the population ages. The City of Ottawa spent nearly $70 billion on retirement benefits, income security subsidies and spousal benefits in 2022.
Block argued that the decision to increase Old Age Security benefits only for people over 75 was discriminatory.
But Laval University economics professor Stephen Gordon disagreed, pointing out that older people are generally worse off.
“Once you’re over 75, you’re much less likely to be able to work if you need to increase your income,” Gordon said, adding that older adults are also more likely to have used up their savings.
Gordon said more funding for seniors probably wouldn’t be high on the list of federal priorities. He also noted that the poverty rate for older people is lower than for other age groups.
“Think about all the other priorities, like housing, education, health. Oh my god, health. This is like a very low priority, and the federal government’s finances are becoming more and more in jeopardy. ,” Gordon said.
According to Statistics Canada, the poverty rate for people aged 65 and over in 2022 will be 6 per cent, lower than Canada’s overall poverty rate of 9.9 per cent.
The Liberals do not have much time to consider their options. In addition to the block’s deadline, it must submit a fall economic statement setting out its spending plans and economic outlook by the end of the year.
Meanwhile, the House of Commons is expected to vote on further confidence motions that could topple the government in the coming weeks.
This report by The Canadian Press was first published Sept. 29, 2024.
#Brocks #pension #demands #conflict #Liberal #political #strategy #economic #plans