Wynne’s Mandatory Pension Plan Will Die Like Socialism

Ontario Premier Kathleen Wynne has the solution to ensure Ontarians retire with decent pensions…force them to join an Ontario government designed plan! This liberal government has a track record of waste, incompetence, accumulating debt, lying, and general ineffectiveness. Yet, Wynne believes she and her government know what’s best for the people. Go figure! Wynne’s mandatory pension plan will die like socialism.

This idea is so preposterous, I checked several sources to ensure she made it. She did, to boot! Here is what Wynne said:

“We believe that we need to set up a structure so that people can save their own money, and they can make investments along with their employers in their future.”

Clearly Wynne believes she knows better than individuals. Maybe she forgot the Soviet Union died, and similar socialist policies failed wherever governments tried them.

Wynne’s Mandatory Pension Plan Is Another Tax On Business

Wynne's mandatory pension plan is another business tax
Wynne’s mandatory pension plan is another business tax

Wynne’s mandatory pension plan is another tax on business. Employers will have to divert funds away from legitimate business costs to pay this tax.

Let’s look at the issue objectively. Wynne is unhappy people are not saving enough for retirement. Does she know that taking money from people stuck in the consumer spending frame of mind will drive them to more debt. It will offset possible benefits from forced savings? Does she believe merely setting up a pension plan will provide enough funds to retire? Who will decide how to invest these funds? Will Wynne guarantee returns on these forced savings?

Has Wynne looked at consumer spending lately? Does she understand that even if she gave people more money the probability they will save is remote? The solution is not to compel people to save while hiking the burden on businesses. No, Wynne needs to shrink government, eliminate taxes on businesses so they can create jobs. Most of all, she needs to lower personal taxes so people have more available funds, not less. Let’s understand that firms, not government, create productive jobs and do not need more indirect taxation. Governments generate waste.

Wynne says the people came up with this proposal. Why don’t these people take full advantage of their existing individual retirement savings? They have a choice, she says, and they decided not to save, but to spend. That’s why she proposes, as a good comrade, to force people to save for their retirement.

Wynne goes on to expand on this bad solution by telling us the government will not operate the scheme. What a reassuring thought! Does Wynne need evidence that governments squander funds directly and indirectly? The liberal government spent a billion dollars (indirectly) on a failed project to automate medical records. It frittered away almost a billion dollars to relocate hydro plants to get votes in the last elections. Come on Kathleen Wynne, what has the Liberal government managed well, directly, or indirectly?

Politicians spend people’s funds recklessly because only a few of us care enough to call them to account regularly. They forget that firms create jobs and do not need extra costs. Wynne and her like-minded cronies will add more expenses to firms as they grab money from the people. And they will find more creative ways to waste our funds.

I pray this sad proposal will disgust and outrage enough of us so these politicians quash it.

© 2014, Michel A. Bell

 

Michel A. Bell

Michel A. Bell is a former senior business executive, author of six books (including Business Simplified released in 2018), speaker, and adjunct professor of business administration at Briercrest College and Seminary. Michel is a Fellow of the Chartered Certified Accountants (UK), holds a Masters of Science in management degree from Massachusetts Institute of Technology and a Doctor of Business Administration honoris causa from Briercrest College and Seminary. He is founder and president of Managing God's Money.

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