Way, way back in the 1980s I purchased a CD by a band called the RainMakers. I’m not sure why I must have liked one of the songs. Anyway, this band turned out to be quite political and most of the songs were - let’s say - right of centre.
For example, the band sang a song called “Government Cheese” that was full of little quips such as “They'll turn us all into beggars 'cause they're easier to please. They're feeding our people that Government Cheese.”
Of course, in Canada for the most part we believe that government cheese is part of a balanced, healthy diet. Even folks such as me like cheese - in moderation.
But what happens when we gorge ourselves on government cheese?
According to the Census, the average Newfoundlander and Labradorian received $9,200 from government in 2020 (not family income - personal income) or about 19% of all income. This excludes any special Covid-19 benefits but includes all EI income that year. In New Brunswick it was 17% and in Nova Scotia 15%.
The municipalities least dependent on government cheese (at least direct cash transfers) are places like Westmount in Quebec (only 4% of income from government transfers), West Vancouver (5%) and Wood Buffalo (4%). That’s as a share of total income but in absolute terms the places where the average tax filer gets the least actual cash from government include Whistler, BC (only $3,055 on average from government) and Tecumseh in Ontario ($3,160). The average taxpayer in Westmount got $6,000 from government but the average total income was $151,000.
This includes all government transfers - CPP, OAS, EI, workers’ comp, social assistance - any cheques from Justin Trudeau or his counterparts in the provinces. So some communities are heavily skewed towards OAS income (retirement communities like Elliot Lake in Ontario ($12,500 per person in government cheese, 32% of all income) or skewed towards EI income like Shippagan ($13,600 in government transfers, 35% of total income).
My point here is not to discuss the robustness of the social safety net. I’m just saying that we need to have enough private sector economic activity to sustain/afford that social safety net.
Here are some of the winners on the top end. St. Bride’s, a Town in southern NL - earns the award for the most dependency (in absolute terms) with the average tax filer getting $19,800 from government in 2020 (excluding COVID payments). That worked out to be 48% of total income for the average tax filer. Most of the top enders are in NL - a combination of heavy EI usage and heavy CPP/OAS (old and seasonal).
There are lots in NB too. There were over 60 communities in 2020 with at least 30% of income coming from government sources.
And this doesn’t include public sector wages. That analysis would be hard to do but if you assume 20-25% of workers in many of these communities are public sector (education, health care, public admin, etc.) you are mostly likely looking at dozens of communities across Atlantic Canada where 50%+ of income comes directly from government or indirectly through wages paid to government workers.
Again, nothing wrong with the social safety net. Certainly nothing wrong with public sector jobs.
But you need private sector economic activity to fund it and as many of these communities are seeing less and less private sector activity, they will become even more dependent on Justin’s cheques.
I wouldn’t want to live in a country that didn’t have a social safety net that ensured that folks don’t live in penury.
But I worry that you can have too much of a good thing. The average tax filer in Atlantic Canada gets more cash directly from government than the total GDP per capita in Mexico.
CPP is not "cheese" as it is paid by employers&employees. EI payments, even where more 'generous' in higher employment areas, are paid by employers&employees and so ought perhaps only 10% would be "cheese". I understand the intent of your article but like most statistics in this country there is a failure of delineation. Another example, is when citing public sector statistics, and comparisons by province or region, there is almost never a distinguishing splitting out of education/health/police/fire from all the civil servants.
I don’t know that I would call CPP govt cheese it’s earned money we and our employers gave govt to invest for us....