Population aging, not overpopulation, is the key demographic issue in Canada today. Canada last achieved replacement fertility in 1971. In 2010, Canada needed 109,000 more babies to hit the replacement rate. That’s 1,022,971 babies needed for replacement since 2002.
Why does this matter?
It matters for the public sector because children (eventually) pay taxes to help support our social safety net. It matters for the private sector because children (eventually) contribute to the economy and add to the employment pool when Baby Boomers retire.
Importantly, Canadians want to have more children than they are having. According to the World Values Survey, the mean ideal number of children for Canadian families was 2.7, compared to having 1.63 in reality
Why is this happening? Among other factors:
- The trend toward delayed childbirth
- Changing family mores
What’s NOT the solution?
- Immigration is one of Canada’s greatest strengths. However, immigration alone will not be enough to overcome the problem
- Heavy-handed government intervention
- The building, expansion or excessive funding of new government funded institutions
What IS the solution?
- Maximise family financial freedom by allowing parents to keep more of their own tax dollars through income splitting measures at all tax levels
- More kids!
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