Tuesday, April 13, 2010

What have the socialists (Liberals) done to us?

What have the socialists (Liberals) done to us?

Back in 1970 I lived in Montreal.  I was a commission sales specialist.  I had a company car and earned around 30,000 per year (not guaranteed).  My first son was delivered in a great hospital (Catherine Booth).  The entire cost including all doctor visits and 7 days private hospital room was $350 - no medicare, no insurance.  We didn't qualify for company insurance because my wife was pregnant when I was hired.  Medicare was established in Quebec later that year.

We bought our first house in Beaconsfield.  It was a custom built multi level split with 4 bedrooms, a nice yard beautiful trees etc.  It was close to 2 and 20 for commuting.  It cost 24,250.  My aggregate tax rate then was 14% ($4200) so the house cost less than one year's take home pay.

After our second child, I decided that my wife needed a car.  We bought a Datsun 510 station wagon for $2820 or about 10% of my take home pay.

THOSE WERE THE DAYS MY FRIEND.  What have the socialists (Liberals) done to us?  Today (Post Trudeau) a house costs 6 times take home pay; a car costs 2/3.


Incisor said...

As a guy in his 20's, I can't even imagine the economic ratios you describe. It's simple unfathomable to me.

I suppose that's what socialists count on - after awhile, giving up half my income and suffering the private sector ramifications of corporate tax and union largess... well, it just feels normal. "The beatings will continue until morale improves."

Anon1152 said...

Are you using 1970 dollars?

$350 in 1970 is worth about $2000 today.

30 000 in 1970 is worth over 171 000 today.

I'm using the Bank of Canada's inflation calculator to come up with these figures.

L said...

They increased taxes so that they could pay for crazy, expensive social programs funded on an "as-you-go" basis. All of them! UI/EI, CPP, OAS, GIS, subsidies, grants, contributions, support for advocacy groups, health care, day care for Quebec through equalization etc. That was sort-of fine when we had a growing labour force (we were quite broke, but could manage), but it is now completely impossible.

Those of us who paid in will never see the benefits nor will today's 20-year olds because socialism does not work! People abuse it!

Leasing was the worst program for car ownership, as it allowed people who should not own them to have them, thereby skewing the market and creating inflation.

Similarly, reducing the 25% down payment for conventional mortgages was wrong. Now we pay for our folly.

The only answer now is to begin re-structuring these programs to pay for themselves and to unravel and greatly downsize government interference and taxation.

Anon1152 said...

In terms of mortgages, the lowest downpayments and longest amortizations came in under the Conservatives.

I love how they claimed to have taken action to prevent an american style meltdown by reducing the maximum amortization for government backed mortgages to 35 years. When they came to power it was 25 years. They're pretending a net 10 year increase is really a 5 year decrease.

L said...

True anon - and this was wrong

BillM said...

To Anon1152

I used relative percent of disposable income so the inflation factor cancels out.