Anti-selection: a term normally reserved for the insurance industry, is a term of which provinces like Manitoba may soon be hear a lot more. This is not a good thing. In insurance terms, it means that consumers who are most likely to experience a claim are the ones most likely to purchase an insurance product (and the ones least likely to experience a claim are the ones least likely to purchase that same product). This produces large amounts of claims that are paid for by fewer people (which causes premiums to rise dramatically).

Manitobans were recently told that the province is growing. That is fantastic. If, however, the province is also losing its youngest citizens to schools and careers elsewhere, and this is coupled with a loss of more wealthy seniors who are seeking more moderate (and less taxing) climates, we very well could realize the classic case of anti-selection. Bluntly stated, if the citizens who choose to remain here, coupled with the citizens who choose to move here, are more likely to use our cherished social services (such as Manitoba’s no-premium healthcare) as a result of their age, their health, or their economic position, either our taxes will increase or our services will diminish substantially.

Former Foreign Affairs Minister, Lloyd Axworthy, even stated in 1997 that Winnipeg welfare rates were increasing because of northern Manitoba native immigration. Was he being racist or was he predicting anti-selection?

D’Arcy Barker is a Chartered Financial Planner and Registered Employee Benefits Consultant- www.barkermoney.com

E-mail: ReduceYourTaxes@barkermoney.com