Abortion as a major cause ofthe looming Medicare and Old Age Security implosion

By: Campaign Life Coalition, August 2012

Analysts have warned for yearsthatOld Age Security and Medicare is unsustainable given our

demographics. The federal universal health care systemwas enacted with legislation by Lester B.

Pearson in 1966, during a time when each woman had an average of approximately 3 children.

Figure 1 not available.

In 1966,that economicmodel

mademore sense. It was based

on the birth rate which

inevitably dictatesthe number

of workerswho end up paying

taxesto supportsocial programs,

like our publicly funded health

care systemandOAS. However,

themodel no longer works

because the numbers have

changed dramatically.

Afterthe widespread societal

acceptance of contraception,

followed by the legalization of abortion, Canada’sfertility rate fellsteadily and dramatically to 1.61

children per woman as of 2011. Thisresulted in a corresponding fall in the ratio of Canadianworkersto

pensioners which proved economically disastrous.  Figure 2, not available.

The dangerousfall in the birth rate,

a consequence of contraception

and abortion, has directly

decreased the ratio of workers

(who pay taxes) per pensioner

(who receivestaxpayer‐funded

medicare,OAS, etc). Thatratio has

been decimated since 1966. In

1970 for example, Canada had

almost 6‐1/2 workers per

pensioner. Today there are barely 4

workers per pensioner. The

decline represents a roughly 38%

reduction in the number offuture

workers. By 2030 the ratio is projected to be approximately 2.5 workers per pensioner. Thismeansthat

our universal health care system(i.e. Medicare) and public retirementincome systems are

unsustainable. Itis amajor economic and social crisis which immigration alone cannotsolve.

Page 1 of 2Why isitthatimmigration alone isinadequate to solve the looming Medicare and public pension crisis?

It boils down to age and taxes.

Let’s use an example of a 50 year old immigrant who comesto Canada,starts working immediately,

retires at 65 and then dies at 85. Thismeans he will have contributed intoOAS and Medicare via payroll

tax deductionsfor 15 years, and then received taxpayer‐funded benefitsthrough hisretirementfor 20

years. By contrast, a young person born in Canada who starts working at age 22,retires at 65 and dies at

85 will have used up taxpayer benefitsforthe same 20 year period, but contributed through his payroll

tax deductionsfor 43 years. That gap in lifetime tax contribution isthe key.

ASimple Solution to a Simple Problem

The reason why we have an impending public pension and Medicare implosion problemis quite simply

that Canada hastoo few workers per pensioner.

Fortunately,the solution is also simple, albeitlong term. Thatis, we have to eliminate abortion,

discourage contraception and encourage a higher birth rate.

Page 2 of 2 Abortion as a Major Cause ofthe Looming Medicare&Old Age Securi