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Does Moral Decline equal Economic Decline?


The information presented on this page pertains mostly to Canada.  For similar information pertaining to the US, see The Happy Days.


STOP THE UNRAVELING OF A NATION

From the Fall 1998 Edition of A CALL TO ACTION (Frontpage)
Canada Family Action Coalition,  http://www.familyaction.org

Does Moral Decline equal Economic Decline?

Divorce

Divorces for every 1000 Marriages

1969:  140

1990:  380 (Increase: 171% from 1969 to 1990)

[Statistics Canada, as shown in A CALL TO ACTION]

1993:  491

1994:  493

1995:  484

1996:  451 (Increase: 222% from 1969 to 1996)

Statistics Canada, as per
Summary of Divorce and Marriage Rates
 
— WHS

Marriage and Divorce Rates in Canada (1967-1995)

Marriage and Divorce Trends in Canada (1967-1995)
SELECTED STATISTICS ON CANADIAN FAMILIES AND FAMILY LAW
— November 1997, Department of Justice Canada

Violent Crime

Increase: 400% from 1963 to 1998

Youth crime increased 148% from 1986 to 1995

Fraser Institute

Child Suicide

Increase: 1,101% from 1955 to 1992

Statistics Canada

Over 8 thousand teenagers attempt SUICIDE every week,

MORE THAN 100 OF THEM SUCCEED!

American Academy of Child & Adolescent Psychiatry

Abortion

Increase: 56% from 1975 to 1993 

Statistics Canada

IN 1995 THERE WERE 106,658 ABORTIONS IN CANADA 

Statistics Canada

Taxes paid on Income

Increase: 35.4% from 1975 to 1993 

The Consumer Price Index - The Fraser Institute

[The picture is actually considerably worse than that.  On top of the steadily increasing income taxes come 7% federal GST on virtually all consumer goods that people purchase, plus provincial sales taxes of about 7% in all province except Alberta.  In addition, there is taxation that is extorted in the form of ever-increasing contributions to the  Canada Pension Plan (CPP), the Employment Insurance Scheme (EI) and Health Care Insurance.  Furthermore, many of the government services that used to be available for free or at nominal fees, are now available only at ever-escalating "Service Fees."
     It would be acceptable to pay these tax contributions if they were applied to secure the funding for the CPP-, EI-, Old Age Security (OAS)- and Health Care benefits.  However, that isn't the case.  Virtually all of the contributions go into the general revenue funds and are squandered right as they are collected, leaving a huge sum of unfunded liabilities that will bring the fiscal system to its knees in very short order.  Combined with an ever-declining proportion of the population that is actually employed and must provide the welfare benefits for the ever-growing proportion that isn't, it will only result in one possible outcome: Financial Chaos for the Nation of Canada.
    However, as of Christmas Eve 1998, the federal government has decided to do its best to stave off bankruptcy and determined that it will be a good idea to squeeze a little more money out of the people by putting a tax on tapes and CD's.  The tax will be $0.50 for every 15 minutes of playing time.  That will be $2.50 for the average CD if you will please.  As it will be until the Spring before that tax gets passed in the House of Commons, the proposal is to make it retroactive to January 1st 1999, just so they don't miss out on a single cent of the new source of revenue.  The tax on breathing our fresh Canadian free air will come around next Christmas Eve, if not sooner.  A tax on drinking water will be next. —WHS
]

Unemployment Rate

Increase: 100% from 1968 to 1998

Statistics Canada

The unemployment rate was at 4% in 1968 and rose to 8% in 1998

[Again, the real picture is much worse than what the ostensible "Unemployment Rates" indicate.  Our government has done a fantastic job of promoting misinformation in that respect, a job that would have made Josef Goebbels proud.
    "Unemployment Rates" quoted by the media present a largely false picture.  These rates don't give any indication whatever of the people who are unemployed, but rather indicate only the number of people who are entitled to receive EI benefits.

     Consider that if all unemployed Canadians were to exhaust their EI benefits, the number of EI benefit recipients (and thereby the "unemployment rate") would drop to zero.  That would make Jean Chrétien happy and a proud Canadian!
     As it is, the "unemployment rate" leaves out the extraordinarily large number of people who have left school, don't enter university (about 51% of that group) and have not found even regular part-time employment one year after they left school (they aren't entitled to receive EI benefits, because they haven't earned any credits by working, on account of not having been able to find any jobs).  It also leaves out those people who have not managed to become employed before their period of entitlement to EI benefits has run out.  It leaves out many more people, so many in fact, that the Fraser Institute estimated the true number of unemployed people to be in the order of about 26%.  However, the Canadian Council of Bishops puts the real number of unemployed even higher than that.  It said that the number is very likely 32% or higher.

Oddly, Statistics Canada appear to be in agreement with the Council of Bishops.  They recently indicated in one of their press releases that only 62% of employable Canadians are actually working.]

Government Expenditures

Increase: 48.2% of GDP (1995) from 1955 to 1995,
In terms of the share of the GDP, they are one third higher than those in the US. 

Canadian Taxpayers Federation

Federal Debt per Canadian

Increase: 1,495% from 1968 to 1998

Department of Finance, Government of Canada

1968 $1,270/person, 1998 $18,990/person

[Once more, these figures too don't present a complete picture of Canada's financial situation.  The liabilities represented by CPP, EI, OAS and by Health Care aren't included in those numbers.  An article in the Oct. 5 issue of the Alberta Report ,"Cool summer, hot fall," page 6, presents a more comprehensive view of the situation.  Two tables (IN THE RED and SUMMARY OF UNFUNDED LIABILITIES) from the article are shown below. --WHS]

IN THE RED
RANK IN
CANADA
RANK IN
WORLD
REGION Debt to
GDP (%)
Debt as % of 
Discretionary
Income
1 46 Yukon Territory 40.4 40.7
2 60 Northwest territory 47.9 48.2
3 69 Alberta 54.5 54.9
4 71 British Columbia 58.5 59.0
5 75 Saskatchewan 63.2 63.8
6 80 Manitoba 68.5 69.2
7 81 Canada 69.6 70.3
8 84 Quebec 73.3 74.0
9 86 Ontario 74.3 74.9
10 87 Price Edward Island 74.4 75.4
11 89 New Brunswick 75.6 76.5
12 96 Nova Scotia 88.2 89.4
13 98 Newfoundland 89.3 90.6
__________________
Sources: OECO, World Bank, Statistics Canada
 
 
SUMMARY OF UNFUNDED LIABILITIES ($BILLIONS)
YEAR CPP* OAS Medicare Total
1991 420.4 445.0 867.0 1,732.4
1992 454.0 470.0 917.0 1,841.0
1993 487.5 488.0 969.0 1,944.5
1994 527.3 515.0 1,024.0 2,066.3
1995 555.5 544.0 1,082.0 2,161.5
1996 600.1 576.0 1,144.0 2,320.1
1997 485.0 609.0 1,209.0 2,303.0
AAG** 3.0% 5.4% 5.7% 4.9%
_________________
  *    The 1997 value reflects Bill C-2
**   Average Annual Growth         
SOURCE: Office of the Superintendent of Financial Institutions Canada
 
[Note: When these figures are included in the average federal debt of Canadians, and if the $640 billion unfunded liability of the EI is considered as well, the average amount of the federal debt to individual Canadians (every man, woman and child) is at more than $108 thousand.  To that must be added the provincial and municipal liabilities; in the case of children, the personal debts of their parents, and in the case of adults their own personal debts.
    If anybody feels that it is possible to eradicate a level of indebtedness of that magnitude without major pains to the Canadian economy and without a general deterioration of the quality of life that Jean Chrétien alleges is so extraordinarily good in this country, they'll soon get a rude awakening.
    The International Monetary Fund and international bankers become worried when a country's expenditures required to support its government exceed 40% of its GDP.  Canada's share of the GDP devoted to that noble cause is now about 50%.  Does it not enter the mind of the powers that play at the game of creative accounting in the federal finances that perhaps no extent of imagination and fudging of figures will do away with the reality that Canada is so over-extended that the Canadian Dollar is driven down on account of that and not on account of having a small reduction in the ten percent of our exports to Asian markets? Perhaps they know all that just too well but try to hide the truth from us in an attempt to survive another term at the trough.  One way or another, if we can't soon replace the people that cause this financial catastrophe, all of us and many generations to follow will be extremely sorry.  --WHS]

With respect to debt to discretionary spending in relationship to the other G-7 countries, Canada ranks only above Italy, and both countries are more than 20 percentage points below the other five.  Canada is first in personal income tax, second in indirect and "other" taxes, fourth in corporate taxes, and its unfunded liabilities for future fedral retirement income support and health care costs are 293% and 289% respectively of GDP.  Rather than dealing with the issues of addressing these problems, the Liberal government prefers to kill the bearer of bad news.
                    [According to Joel Emes, senior research economist at the Fraser Institute -- in the Oct. 5. 1998 issue of the Alberta Report]

Bernard Dussault, the chief actuary of the CPP, was fired last week (in September 1998), just three months before he was supposed to present his two-year report on the state of the fund.  The government denies it, but rumour has it that he was fired because the government didn't like what he was putting into his report.
                    [Source: the Alberta Report, Oct. 5, 1998, page 7]

    Note: As of this week (ending Dec 19, 1998), the successor of Bernard Dussault, firmly held on the leash by the Chrétien Government, provided the kind of report that our Prime Minister wanted to see all along.  He made the projections that indicated that Canada Pension Plan taxes (as they don't go into any kind of investment fund and go into general revenue to be spent as they are collected) will not rise beyond the magic threshold of 10% of income.
        Thereby the federal government deliberately attempts to pull the wool over our eyes once more and pretends that we don't have to worry about the enormous unfunded liability that the Canada Pension Plan presents to future generations of taxpayers. —WHS


Historical foreign exchange rates and links to current rates

___________
Updates:
2001 02 10 (format changes)