Ontario Ministry of Health and Long-Term Care
Canada is becoming a nation of two distinct groups, the aging and young. Due to the aging population, many Canadians are worried that it will have a negative snowball effect on the economy. Throughout the years, politicians have speculated that the aging population threatens the financial sustainability of Canada’s health care systems (e.g., Robson, 2001; Siegel, 1994). Based on true facts, population aging reduces the amount of personal income tax revenue, which accounts for approximately 30% of our government’s income. Per capita, healthcare costs increase with age, and also as age increases so does the demand for more expensive and longer healthcare treatments. Although Canada’s population is aging, and the effects of the “baby boomers” are taking place, the Canadian government has done a good job in accommodating financially for them since Ontario has recorded its third surplus in a row in healthcare budget. As in the past, this shows that our government is capable of efficiently managing their resources and funds. (Canada, 2012)
Even though many are worried about the negative effects of our aging population, there are also many opportunities to be created from this dilemma. The Canadian government has realized that it will need to adapt and accommodate for the aging population to sustain a stable economy. Because of the aging population, there will be an immense loss of contributions to Registered Retirement Savings Plans as well as to pension plans. As a result many baby boomers will need to work longer to ensure they have enough pension money to last them the rest of their life. Since 2006, the Canadian economy has been relatively strong and as a result the government has created over 1.4 million jobs. Lastly, with the possibility of a huge financial crisis due to the overuse of our healthcare system, the Canadian government has implemented many new budgets and plans to sustain our healthcare benefits. The government has provided many new vaccinations, cancer screenings, and services to prevent common illnesses such as the flu. Healthcare expenditures have grown at an average annual rate of 7.5% over the last ten years, compared to only 5.7% for total available provincial revenue , and it continues to strengthen its Medicare. (Ontario, 2008) All of this proves that the ministry has proactively planned accordingly to provide adequate support and services to the aging population.
In conclusion, although the government is doing its best to accomodate Canada’s aging economy by implementing budgets, plans and health acts, it should allow private companies to help partake in the solution and share the cost. Right now, The Canadian Health Act finances our medical care based on certain requirements, with no competition. It is publically owned by the government, but it should temporarily suspend enforcement of the Canada Health Act for a period of time to allow the provinces to experiment with new ways of financing medical goods and services. Economic
For the past few years, baby boomers have driven our economy. But since they are aging, and the fertility rate of Canada has decreased significantly, Canada’s population will soon slow the labour force growth. Over the next 20 years, the number of working-age Canadians per senior will decrease from around 5% today to approximately 2.7% by the year 2030. With this in mind, unless the Canadian productivity growth and labour market participation improve, the aging population is expected to lead to slower increases in our income and increase the possibility of labour shortages. Luckily the Canadian government has been aware of the aging population, and has implemented and announced many important economic initiatives to create an environment with a higher participation of Canadians in the workforce to sustain the impacts of the aging population. Canada’s rapidly aging population is going to present challenges...
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Ontario’s healthcare information technology sector
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