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The concept of RRSP is a good one. It recognizes the need to protect the part of savings that would otherwise be taken by Government as income tax to disappear from our economy. Where RRSP fails is in the restrictions on how it is invested. The rules put it into the hands of the paper pushers who have been renounced not only for poor choices of investment but have spawned the biggest crooks in our society. Instead of investment in the most productive sectors of our economy the money goes into financial instruments. The people who benefit most from peoples RRSP savings are the brokers and traders whose main objective is their own profits.

The poor politicians have been mislead again by the elite who have led them to falsely believe that they must protect the people they serve from themselves. It is this intellectual elite, with their high education,that feel that the rest of society are not as smart as they are. As my father said, “You can educate fools, but you can not make them smart”. They have set up the RRSP scheme believing that people are not responsible enough to make their own savings decisions. If Government was doing its job, they would make sure that people are protected from the swindlers.

There should be no need of an RRSP. A saving is a saving. Any savings should be eligible to avoid taxation. The saver has no benefit from the amount saved until they “unsave” it and spend it. While it is saved, wherever it is invested, in a bank account, in their business or in a neighbors business, it is all money that is wealth to be used for the benefit of all the rest of us in society.

If individuals were free to make their own choices, choices would be made based on more than the gambles of paper pushers. They would invest close to home, with things they know and people they know. Small business would have a source of funds that are denied them by the banks and those in the big office towers. People would have the choice, they could decide where their savings are invested or take their chances with the paper pushers.

If it is worthwhile to encourage people to invest in a Retirement Savings Plan, what is wrong with the plan to build up their business, which also builds up the economy and productive capacity of the country. Those in small business expect that business to provide for their support in old age. Whereas a salaried person is able to save tax by investment in an RRSP, a small business that always needs capital, can better use his savings to build the business. ( and create jobs) How many small businesses would have survived the competition of the big businesses, with their ability to get money from the big financial institutions, if they had been able to add productive machinery or inventory without having their money taxed before they invested it.

Why will Government not understand that we should tax people only on what they spend. What they earn and fail to spend is money available for use by the rest of society and available to them upon retirement or when they need it, at which time the rest of us would have the benefit of their tax. Government has no business trying to do things for people that they are able to do themselves.