‘Younger people are doing a disproportionate share of the sacrificing’: Why Canadian youth are losing hope

Paul Kershaw, policy professor at UBC and the founder of the think tank Generation Squeeze, which advocates on behalf of young adults, explains why Canadian youth are feeling increasingly financially insecure, locked out of home ownership, ignored by their governments, and tasked with bearing the financial burden of their financially secure elders. You can listen to this episode on Amazon, Apple, and Spotify. Program Summary This is an automated summary. Please check against delivery. Current federal spending patterns reveal that approximately 80 percent of new transfers to individuals in the budget are directed toward Old Age Security for Canadians over 65. By comparison, investments in programs that benefit younger Canadians, including housing, post-secondary education, childcare, and youth employment, receive substantially smaller allocations. The analysis shows that Old Age Security spending is projected to increase by 28 billion dollars annually by 2029 compared to 2023 levels. In stark contrast, youth employment programs will receive less than one billion dollars in additional funding, housing will see an increase of 1.6 billion dollars, post-secondary education will gain slightly less than two billion dollars, and childcare investments will amount to less than three billion dollars. It was emphasized that the numbers for things that matter for younger people are so much more modest than what is being done to grow spending for retirement income security, and that budget evaluation should be approached from a “put your money where your mouth is” perspective. The critique acknowledges the importance of supporting older Canadians, referring to them as “people we love.” However, it questions the wisdom of current spending patterns, particularly the provision of substantial subsidies to financially secure retirees. Under the current system, retired couples with household incomes of 180,000 dollars receive 18,000 dollar subsidies through Old Age Security. A proposed solution is that the government could slow the growth of Old Age Security spending and repurpose those funds to eliminate poverty among seniors while simultaneously accelerating investments in younger Canadians. It was noted that despite 85 billion dollars in Old Age Security spending, approximately 400,000 seniors still fall below the official poverty measure, though this represents the lowest poverty rate of any age group. The spending imbalance becomes particularly striking when compared to other major budget priorities. Even the significant increase in national defense spending, described as “transformational,” will grow by only 15 billion dollars annually by 2029 compared to 2023, representing just half the increase allocated to Old Age Security. The critique argues that society is prioritizing the needs of those who are more financially secure at the expense of their kids and grandchildren, framing the issue within the context of what has been described as a moment requiring shared sacrifice. The proposal has garnered support across the political spectrum, with endorsements from the Globe and Mail editorial board, coverage from the National Observer, and alignment from organizations ranging from the Fraser Institute and C.D. Howe Institute to anti-poverty groups. This convergence has been described as representing “rare political ground” that should be leveraged to reform the largest line item in the federal budget. The economic challenges facing younger Canadians extend well beyond employment. Statistics illustrate the deterioration of housing affordability across generations.