It’s time to adapt policy to find better balance.

It’s time to adapt policy to find better balance.

While Canadians under 45 face a precipitous drop in their standard of living, the government prioritizes spending to Canadians over 55 Generation X came of age when wages were falling and housing prices were sky rocking. As a result 34 to 44 year olds have a debt level of 95 per cent of there household income.

Why do we spend so little on generations under age 45? Part of the answer is that we are spending more elsewhere, including on older generations.

 Research show that the dramatic pattern of tax cuts over the last decade does not play out neutrally across generations. During the 1980’s both federal government and the provinces were interested in using tax reform to produce better incentives for productive employment. A 1976 study “people and jobs,” by economic council of Canada argued for better co-ordination between tax and transfer policies and the goal of high employment 

Keynesian focus on institutional and demographic events to explain the dangers of fighting such inflation with restrictive monetary policy and fiscal policy which would result in unacceptable increases. In the unacceptable increases in the unemployment was the increase in the labour force with baby boomers and women,

Keynesian argued with the reimposition of wage and price controls of 1975 to 1978 to the 1980’s which is credited with slowing the inflation caused by oil price shock of 1973 to 74 (Clarence Barber and J. McCallum, unemployment and inflation: The Canadian Experience 1980)

With increasesing to retirement security and medical care we now collect five percent less of our economy in taxes than we did in the year 2000, our younger generations struggle to bridge the gap between stagnant wages and high housing costs, our current young. Canadian priorities need to change public spending on medical care is higher than pensions spending on older Canadians doesn’t have to come at the expense of spending on younger generation We need to find a way to make a balanced policy that is going to work for the people not just the government to make their books look good. Keynesian approaches didn’t work, we need to find a way to have lower housing prices and higher paying jobs, As generation X is fighting for change maybe it will be better for Generation Y.

Jen.M

Kershaw,P.November 4,2012.Governmemnt should help out young Canadians.vancouver sun
 http://blogs.ubc.ca/newdealforfamilies/

Davenport,P.November 1,2012.Economics.The Canadian Encyclopedia

http://www.thecanadianencyclopedia.com/articles/economics

Tralee,P.September 21,2012.For GenerationX, it's all work and no kids, study finds.The Globe and mail
http://www.theglobeandmail.com/life/the-hot-button/for-generation-x-its-all-work-and-no-kids-study-finds/article617574/

Wyn, J. (2012). The making of a generation: policy and the lives and aspirations of Generation X. Journal of Educational Administration and History, 44(3), 269-282.

Pressman, S. (2011). Microeconomics After Keynes: Post Keynesian Economics and Public Policy. American Journal of Economics and Sociology, 70(2), 511-539.