COLLATERAL DAMAGE AND FUTURE CONSEQUENCES OF POLITICAL FINANCIAL FORMULAS
(These thoughts are purely the blunt, no nonsense personal opinions of the author about financial fairness and discrimination and are not intended to provide personal or financial advice.)
In the last post of October, 2018 the Alberta Conservative proposal of a teen entry level wage was discussed. This post discusses the collateral damage or unintended consequences such an action could have on future financial lives of teens.
Every action taken can have consequences reaching far into the future. An example is the teen entry level wage suggested by Alberta Conservative candidates. The collateral damage and consequences of this action may impact financial programs such as Employment Insurance in the short term and Canada Pension Plan benefits for those teens forty or fifty years into the future.
CPP is a government defined benefit plan whose benefits are based on contributions deducted based on wage levels. Employees are required to work forty full time years to receive full CPP benefits. If entry level wage up to 21 years or first five years of employment is implemented this will affect the amount of CPP benefits received for those five years, maybe even as high as 10% lost in CPP benefits (five out of forty employed years and CPP benefits for twenty years from age 65 to 85). Even if entry level wage up to 21 years was implemented for a number of years and then repealed because of its discriminatory nature, the CPP benefits for this minority group (and only for this group) will be affected forever if CPP benefits are not fully restored for those years.
Approximately 520,000 Albertans and 4.5 million Canadians were adolescents and young adults aged 15 to 24. If the teen entry level wage is implemented only in in Alberta Conservatives will be forcing their Alberta teen constituents to earn less wages and CPP benefits than teens in all other Canadian provinces and territories. How can Alberta Conservatives see this as morally and ethically fair?
Conservative goals on labour policies (Jason Kenney’s teen entry wage, Doug Ford’s broken promise on basic income pilot project, Trump’s tax cut for the wealthy) seem to try to circumvent and subvert in any way possible a decent minimum wage, a basic wage or living wage without concomitant tax loophole reductions for the wealthy and without evaluating the full consequences of those actions now and in the future.
It is time for Conservatives to use forward thinking instead of narrow mindedness in problem solving related to labour. If small businesses are having difficulties then solve the small business problems instead of targeting labourers.
Jason Kenney needs to provide full details on the proposed teen wage reduction so voters can make informed choices.
(This blog is of a general nature about financial discrimination of individuals/singles. It is not intended to provide personal or financial advice.)