Immigrants cost Canadians $23 Billion a year: Fraser Institute

by Barry ORegan | May 17, 2011 at 09:09 am
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Immigrants to Canada cost the federal government as much as $23-billion annually and “impose a huge fiscal burden on Canadian taxpayers,” according to a think-tank report released Tuesday that was immediately criticized as telling only part of the story.

A part of the story Canadians for decades have read are various media stories stating the “Pro and Con” on immigration, in particular multiculturalism, language and incomes.

The Fraser Institute report stating incomes of new Canadians versus Canadian born citizens show new Canadians earn a much lower paycheque. This results in less taxes for government coffers to prop up our declining social programs. 

As the Fraser Institute report states new immigrants cost the Canadian taxpayer $6,051.00 for every man, woman and child, many wonder how much longer can Canada sustain the Status Quo as our social programs are a political issue by Canadians and political parties alike?

Canada’s return on investment into our economy through immigration for decades was a Trudeau Liberal era mantra, still practiced today by liberal governments.  Immigrant ethnic votes are a tried and true election strategy.  Unfortunately, the Fraser Institute report states return on investment contradicts the Liberal ideology.

Canadians to this day still buy into the Liberal ideology that increasing immigration exponentially is a rosy picture and our employment future, when in reality new comers to Canada were the most vocal opponents to these Liberal falsehoods.  

For decades, the educated immigrant, Phd  in hand was never utilized to their greatest potential, as many immigrants were relegated to driving taxis or delivering pizza.   How the educated immigrant could possibly contribute into the payback scheme was never realized?  Two decades have passed and federal and provincial government inaction, political posturing, and promises to action this injustice was never fully implemented, except through rhetoric.

Multiculturalism

The Trudeau Liberals answer was a new government ministry called Multiculturalism, a multi-billion dollar taxpayer funded white elephant.

Multiculturalism ended up being more public relations and validation of cultures, more an appeasement of group hug experiment for Canadian businesses to buy into hiring from immigrant communities. A dismal failure seen by the majority of Canadians and immigrants, when Canadian Industry were not buying what the Liberals were selling.   Immigrants to this day demand a real meat and potatoes resolve past governments have continually failed to provide, such as real action in recognizing foreign university accreditations, including recognizing foreign work experience.

Then there is the issue of the vast majority of immigrants who are allowed into Canada, as past and present studies revealed immigrants for the most part were unskilled, uneducated and illiterate as compared to Canadian post secondary school standards, a vital prerequisite if securing any employment above minimum wage, in order to pay enough taxes to infuse into social programs without having to rely on social programs daily.

If the Fraser report is to be taken as accurate, Canadians need to ask themselves is it logical to increase or maintain immigration levels if Canadian social, school and health services have been on a steady decline for decades? A decline of services outraged and overtaxed Canadians demand to be increased, but never will be?  

Financially speaking, if our population increases to the tune of 265,000 new immigrants annually at a cost of $23 billion dollars, it is a fact that the money has to be taken from somewhere to pay for this.  Social services are continually strained as our population increases and ages every year and this is just for Canadians citizens. 

So if social services monies are also increased in settling and maintaining new Canadians, which have clearly outstripped any taxes paid from minimum wage occupations 10 to 1 how can we ever hope to maintain the barest of minimum of social services, when it is said taxes paid through minimum wage occupations are not enough? Especially when the majority of immigrants earn a minimum wage?

As taxpayer funded social service costs continue to spiral upwards, Canadians must supplement these social services through increased taxes every year just to maintain social services to a bare minimum!

If Canada expects new Canadians to infuse the Canadian economy with taxes from occupations then Canada needs to select those immigrants who can be up and running as soon as they land on our shores, begin working and paying taxes.  

Canadians may have difference of opinion on this hotbed issue, but facts and figures seem to indicate that our economy can ill afford to sustain even the barest of minimum social services if Canada selects those immigrants who can ill afford to even maintain themselves and their families without relying heavily on social services year after year.

While everyone will experience a learning curve in order to adapt, many new comers to Canada are resistant to change.

An immigrant whose failure to improve themselves or assimilate into Canadian culture will intern them to a cultural ghetto where they will stagnate in minimum wage occupations forever, most relying on their children to succeed where the parents failed. 

Is it unfair to paint all new Canadians and the varying cultures with the same bad brush, based on the examples of a few, or do Canadians expect immigrants to adjust faster to be a right fit in Canadian society? 

Metro Vancouver and Toronto are prime examples of cultural ghettos and language issues.  Media and university studies past and current reveal many immigrants who have lived in Canada for decades are still unable or unwilling to learn English or French, Canada’s two official languages.

Notwithstanding many immigrants and new Canadians prefer to enroll their children into their own local cultural based school, with little Canadian content.   While maintaining ones culture is their right under the Canadian Charter, this leaves the Canadian school system fraught with declining enrollment, budget cuts, overcrowded classrooms and limited resources, thus depriving all children of a brighter future, immigrant children included in many cases.  

Many will think racism, but in the words of British Columbia’s previous Lieutenant Governor  David Lam “ When a Canadian is concerned about his own way of living, this is not racism”.

Diversity is our strength. Unity in diversity”.

In actually, several academic studies would suggest otherwise. Irenaus Eibi-Eibesfeldt, Pierre van den Berghe and Harvard’s Robert Putnam have correlated growing diversity to declining trust, making a formerly homogeneous population less willing to vote for redistributive social programs that benefit those not like them.

Bob Birrell of Monash University also found that the more culturally diverse a community is, the lower the rate of civic volunteerism becomes. It is therefore apparent that there are both benefits and costs of diversity.

Variety may be the spice of life, but too much spice may give a society ethnic indigestion. Cultural cohesion is every bit as important as cultural pluralism. “Diversity” must be taken for what it is-a neutral term without either a positive or negative connotation. I have a diverse number of insects and pests that inhabit my home. I am afflicted with a diverse range of medical ailments. And I have a diverse number of creditors on my back, and it isn’t shrinking my total debt one bit. Personally, I could do with a little less diversity in my life.

When Conservative Prime Minister Stephen Harper's recently elected majority government this month spoke volumes what a no nonsense approach to economic policies, including immigration quotas sated the Canadian masses, including new Canadians who realised Prime Minister Stephen Harper does not deliver rhetoric, but sound policies benefitting all Canadians, though some Canadians did not agree in principle with certain election promises, those who did not agree may realise after reading the Fraser Institute report that tough times call for unpopular fiscal measures.  

In addition, Minister of Citizenship, Immigration and Multiculturalism, Jason Kenney once stated we are fast becoming a nation of cultural ghettos, he certainly was not being racist.  Mr. Kenney was succinct, a refreshing respite one rarely finds in a politician who rarely sugar coats their words, in which even new Canadians agree with.

If Canadians feel they are living in troubling times now, with many Canadians demanding less government and lower taxes seems a contradiction in terms when these same Canadians are either demanding increased immigration and are still dependant on government taxpayer funded services as a mainstay of their daily lives. 

It is up to Canadians to decide what they want, a better social safety net for themselves and their children to be sustainable or face the challenges of the Pro and Cons increased immigration Canada will bring? 

If Canadians wish for immigration to be maintained, then Canadians cannot blame anyone but themselves when social services are reduced and $6,051.00 of your income taxes every year are increased every year after that to infinity to maintain the barest of the minimum benefits for infrastructure, schools, unemployment  health care, welfare and social housing etc.

In a perfect world it would be nice to have everything we wish for, but we are not living in a perfect world and we should think long and hard what we wish for.

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Piobar

Something to bear in mind is that the immigration system, out-dated, short staffed, and hampered by contradictory legislation as it is, is a HUGE part of the burden. Many new immigrants have horror stories about their long, drawn out attempts to become Canadians. As you mentioned, for YEARS many new immigrants with PhDs in a variety of fields, from medical research to Engineering and Architecture, to Law, have been forced to take menial jobs, driving taxis, or working as cleaners. In some cases, this is because the institutions they studied at in their native countries had lower standards. In other cases, it is their grasp of French or English, though many such instances are more to do with accents, or a grasp of idioms, rather than an inability to speak the language. The vast majority, however, seem to fall through the cracks of our system, and are more worried about trying to pay their bills and support their families than trying to fight a system that is so entrenched in its ways that it has changed little in the last half century.

Another thing to keep in mind is how much of a burden our politicians are on the tax payers. They spend less than half the year in Ottawa. In theory, they should be spending the rest of the time meeting constituents, or sitting on committees, or doing any of the other countless things that we expect our politicians to do when we elect them. The budget for Parliament in 2010 was (albeit according to Wikipedia) $583,567,000. What, if anything, are they doing in Ottawa to deserve such a huge budget? And how much of it is going directly into the pockets of the MPs? I would love to see a breakdown of the average hourly rate of pay that an MP in Canada “earns.” They have been off since the last Parliament fell, on 25 March 2011. At this point, they are not scheduled to sit again until the 2nd of June, a month after the election. This being in spite of a campaign promise by the Prime Minister that, if given his Majority government, he would have Parliament back to work the day after the election. And what will they accomplish prior to breaking for summer? A throne speech, maybe a budget, and a big pat on the back for themselves then off to their vacation homes for three months, to recover from the stress of doing so little for the people who elected them. That, to my mind, is a larger burden on the tax payers than helping to get new immigrants on their feet when they arrive.

Fix the problems with the Immigration system, crack down on those who are scamming it, and do a better job of helping out those who actually CAN reinvigorate our economy. Something needs to be done about the continuing number of fraudulent Refugee claims, criminals, and so forth. That will cut down on the cost of our Immigration policy without shutting the door to legitimate refugees and immigrants. But for that to happen, our elected officials need to get up off their backsides and approve a change. Which means they need to actually do some homework, and find solutions to the problems, not just sit back with their cushy salaries paid out with tax-dollars and shout “boo” at their opponents, or chear on their leaders. They earn more in a year working less than kindergarteners go to school, than most Canadians working full time year round can ever hope to earn in. Yes there are problems with the Immigration system, and with the Employment Insurance system, and just about every other system the government has in place… but fixing these issues means that our government actually needs to start governing, a duty they have been shirking for far too long….

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Barry ORegan

Thanks for the well thought out commentary PioBar

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Piobar

I just feel it is important to remember who should be dealing with this. It is a big issue, and has been for a long time. But nothing gets done about it because it is also such a touchy issue. Fear of fallout should they make an unpopular move has led to years of apathy at the top, from the only people with the ability to actually do anything about it....

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RUPINDER

Immigration should be increased because in some provinces  new enrollment in schools is going down .We will have eventually more proportion of old people as copared to young or kids proportion.Atleast, immigrants bring their kids with them or they have here.In Canadian systen,it is too hard to afford kids thats bye most of couples or families do not want kids.  

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Piobar
First Flagged at 9:17 AM, May 18, 2011 by Piobar
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