Summary
Dismay over the political drama in the 2011 federal budgeting, people are overlooking a threat of aging Canadians. As results set out by Statistic Canada
Connection
The connection that seems obvious to me is to that of aggregate demand. As we all know, aggregate demand means the total demand of good and services in the economy; this also includes government spending. If the predictions of StatCan are true, then this will greatly affect the aggregate demand of the government’s. This means they will need to develop a plan to answer the situation. As ultimately, this will translate in a slower potential economic growth in the years ahead, which also translate to slower growth in tax revenue. This will lead to effect how the government will export/import some of their resources as well as change future spending.
Reflection
I personally think this could potentially uproot Canada’s economy in the future because if all the Baby Boomers retire during a short time frame this drastically puts a hole in the labour market. This shortage in the labour market is going to pose many problems in the production industries. As the article has mention, the government is already on a tight budget and if their solution is to raise taxes then this may scare away consumers, which leads to difficulties for many businesses. Not to mention the health care cost that is going to take to support all the seniors. The government has work up to their necks and if they want to resolve this, I think discussion about this topic needs to be brought up in the upcoming federal election otherwise I do not see a bright future for Canada
