There is no easy fix to PEI' s Public Sector Pension woes. Ethics, good will, trust in the end has nothing to do with the problem. The problem is structural and faces all governments and all citizens. In this short post I will show you the structural issues in play so that you can see what the real problem is. In part II, I will offer up some structural ideas about what might work.
I comment on this not just because I care and that this is important but because I also was once a manager of large pools of money and was also the policy person responsible for a pension fund much larger than PEI's.
This image shows the core problem. There are not enough tax payers to pay for the pensions in the future. For the first time in history, PEI, and all western states, have a population distribution that has more older people than young. On PEI this is more extreme than in many places.
PEI's Public Pension was never properly funded. In the early years, it relied on the pyramid on the left, which had lost of taxpayers in the base to pay for much of the few pensions. This is not a unique position, many pensions did this. All such schemes are in trouble. This is the fundamental flaw.
Issue #1 there is not the time or the money to fund the pension properly.
When last seen the unfunded liability was more than $400 million. To put this in perspective that is about 50% of the total PEI annual tax revenues. The issue that faces all Islanders now is time and risk. Many pensioners will be retired in the next 5 years. Most in the next 10 years. The Province said that it could afford to pay $20 million a year to close the gap. The math does not add up. The gap cannot be closed in time.
That then leaves the issue #2 of risk. There is not the time to take more risk as the pension has to be paying out now to many pensioners.
The fund managers cannot place the funds in assets that carry too much risk. The massive loss in 2008 suggests that the Province was already pushing the managers to be more aggressive than they should have been. The losses from 2008 were much larger than they should have been if the portfolio had had a more conservative policy. An additional risk now is that the Province will again push the managers to take a more risky position. The fundementals for the market are weaker today than they were in 2008. This is not a time to take more risk.
Issue #3, can PEI raise taxes?
As this graph shows, the answer is no to this. And it's worse.
Most of the talented young Islanders have had to leave PEI as there is not enough work. So not only does PEI have too few young but the best have to leave. Worse, many return when they are old!
There is simply not the tax base to call on to make up the difference. Unfortunately I have not shown you all the bad news that makes this worse. And here it is. The "Elephant" in the room.
PEI's health costs are a product of poverty, lack of control and an aging population. The all in cost of health care has risen as a percentage of PEI's own tax revenues excluding the Feds from 53% in 2000 to 78% in 2010 (Figures taken for CIHI and from the PEI Budget) By 2015, the health care costs will exceed the PEI core tax revenues. Because the growth is exponential, they will double the tax revenues by 2020.
There are 2 main drivers for this. The first is that PEI has more old than young. The second is that PEI has more chronic illness than most places.
These poor statistics do not show that Islanders over 60 will be 60% likely to have Type 2 Diabetes.
It's depressing isn't it?
There is no easy way out of this and there is no way that the money itself can be re arranged. It's way too late for that. One thing is for sure, what was promised to Pensioners will have to be pulled back from. PEI, and many provinces, cities and nations are all caught in the same jam. Pensions will have to be cut. I am not recommending this, I am simply stating a fact of life. There is not the money to pay them as promised.
So is there a way out?
I think that there is but it has to work on the fundamentals and not the figures. I will post at more length in a few days. But here are the highlights.
We have to work on the fundamentals. PEI has to have more young people living on PEI who can do the work and so pay taxes. To keep our young here and to attract more to the Island demands an employment strategy. This cannot be a traditional one of trying to attract employers to open a call centre or a plant.
PEI has to attract many young families to PEI to be part of the new food revolution that is tied into the health revolution. PEI itself has to lead in the health revolution too.
I will make the case that we are seeing a revolution in health and in food that will create a huge demand for Real Food. This can only be grown in small operations. PEI has a great start here and also has, relative to Ontario and Quebec, cheap land. We are already seeing a new kind of "Back to the Land" movement that is based on this new kind of food system. PEI is a long the way to identifying good food with PEI.
These people will not come here to get jobs but to own a small business. They too are fed up with being squeezed out of life in the big cities and want a real life. I will explain this more later.
To stop the health care costs from consuming all PEI's resources, PEI has to apply the principles of the new health revolution to itself. My regular readers will know what I am talking about. Bottom line most chronic illness can be prevented and also cured by better diet and some changes to how we live. It may be possible to reduce PEI's health costs back to pre 2000 levels in 10 years.
Making a big push in the food system needed to do this adds to the value. But I get ahead of myself.
Bottom line PEI has to
Have 10,000 more young families here by 2020
Have most Islanders eating real food as a matter of course
Have a health coaching system set up to facilitate this difficult shift in culture
If PEI can do this, then maybe most of the pensions can be saved and PEI will move ahead to being a have province.
"Mr. Gill owes about $45,000 in federal student loans, plus another $40,000 to his parents. That investment in his future has led to a secure job with decent pay and good benefits. But it has left him with tremendous financial constraints, as he faces chipping away at the debt for years on end.
The Federal Reserve Bank of New York, in a new study, found that 30-year-olds with student loans were now less likely to have debts like home mortgages than 30-year-olds without student loans — even though most of those with student loans are better educated and can expect to earn more money over their lifetimes. The same pattern holds true for 25-year-olds and car loans.
This is surely a different start than any modern generation has had before? Can you buy a car? Can you own a home? Can you afford to have children? What does it mean for how you live your life?
Is this why so many young don't and have to find another way?
Is this why car sharing has to be a new reality? Is this why renting will become so important? Is this why owning stuff will have to be less important? Is this why in the UK so many 30 plus year olds still live with their parents?
Isn't our economy and our culture is centred on owning stuff. It has been since the dawn of agriculture. But the Millennials cannot own stuff. A whole generation will grow into middle age with few assets that they "Own".
A marker of this is car sales. Cars sales have dropped in Europe for 18 months in a row. Car sales are down 10% in Europe and 17% in Germany! Demand also sank in other major continental markets, falling 14.5% in France, 13.9% in Spain and 4.9% in Italy. The UK was the only major bright spot for car makers, with sales up 5.9%.
What does this mean to an economy that is based on selling more and more stuff?
What will this mean to marriage and family? At the moment single people and single parents are at an all time high. Can a person survive as a single in this kind of world where sharing may be the only way to have what we need?
We cannot know how this will be in any detail. But this is will be very different from any generation for 10,000 years.
It could mean the re-emergence of a society that is based on sharing and on the tribe. We used to live like this. Huans lived like this for all time - Except the last 10,000 years after the dawn of agriculture.
You can retire from a job. But can you retire from life? Is the idea of retirement part of the idea of the job?
If this is correct, then as fewer and fewer of us have jobs, then the idea of spending the age of 65 - 85 playing golf has to go away. As does the idea of us old folks living separate lives.
With low relative wages over the last 20 years, the saving base is not here anyway. 75% of American nearing retirement age in 2010 have less than $30,000 in savings. Most have no pensions in the old way of a predictable annual flow of money either. And even these, mainly in government, are under threat as many are underfunded. Many pensions have lost a lot of ground in the last 10 years as well. With very low interest rates, even people who have savings are earning next to no income. Government bonds pay less that 1.5%. This will force savers into capital.
"As with many concepts that we now take for granted as a reality seemingly dictated by the laws of physics, the idea of retirement is a social construction that is subject to change. A combination of factors now challenge today’s notion of retirement. The changing nature of work, economic necessity, smaller and fragmented families, the capacity of public and private pension providers to ensure income that enables 20-plus years of not working for income as well as the desire of many retirement age people to continue working are eroding our expectations of what retirement is and should be. Sometimes big change happens slowly and is barely perceptible at any one moment. Retirement, as we know it today, is history. A new story is emerging – a narrative that will change how we individually plan and behave as well as the government and business institutions that are built to support the retirement we once knew."
I struggle to make sense of this for myself. I have savings but next to no pension. My savings would have been enough in times when interest rates were higher but not now. This is why I have downsized my own life and invested in ways of reducing my costs in the future. This is why I have become so interested in staying healthy. This is why I have started to reconnect with the daily lives of my kids and their kids.
Are you a boomer? How do you see the next 20 years? Do you have some good ideas to add to the mix. I don't think any of us on our own are smart enough to figure this out. But maybe we can collectively muddle our way ahead through trial and error?
Here are more of my working notes for part of my new book: You Don't Need Medicine - To Be Healthy.
The central thesis of the book is that our health is directly connected to the environment. That is why you and I can make the changes that we need to be healthy.
This post is a sketch for the chapter in the book that will be about our social world. My notes on the choices that we face for Diet are here. My notes for the ideal environment that we need for our Body are here. My notes on all the science that supports this thesis are here.
The Mind Our Blessing and Our Curse
We have seen that our our stomach and our body need a certain environment to keep us healthy. Now we come to the most mysterious part of the chronic health equation. Our minds are the third element. Oue mind too reacts to its environment and then drives good or poor health.
For instance, if you work at the bottom rung of a bureaucracy, you are four times more likely to die of heart disease than the leader. If you retire at 65 as a man from a bureaucracy where all your status came from your job, you will be lucky to live another 5 years. If you live in a country with a wide range between the rich and the poor and you are poor, you will have much worse health than a person in another country living the same life as you but with a smaller income gap.
Status and control are the core issues for how our social environment affects human health. How this works is all about our being first of all a primate and secondly about being human and so being self aware.
All animals have a stress response. If you are a Zebra and you are being chased by a lion, you would go into full stress response. Every part of your body will shut down to ensure that you can run for your life. Your body is flooded with cortisol, the stress hormone, to do this. It's a huge bet: but this full on focus on running only lasts only for minutes. You are then dead or safe. If the lions are not hunting, you are calm. As a zebra, the stress response is only a good thing.
But for primates, like baboons or humans, it's different. All primates rely on the troop, band or tribe. There can be no life alone outside it. So, while we still go into high stress when we face a leopard, we also worry all the time about our social status. When there are changes at the top, everyone gets anxious because of the social uncertainty. Being low in status means that all those above us can take out their problems on us. Lower ranked members can stress all the time because they have no control over how they will be treated.
To combat the effect of the social stress, primates groom each other. Even the lowest member of the troop is included. No one is isolated. All primates need to groom to stay healthy. We have to live in a close knit small community where we have our place. We all need to be touched or have relationships that offer the equivalent. This is why prolonged isolation can be so terrible for humans or why babies, that are not touched a lot, develop so poorly or even die. This is why not having caring people in our lives is so damaging.
Because humans are conscious we have yet another layer of stress. We can imagine time and intangible events. So we can stress about global warming, world peace or gun control. We can worry about things that happened in the past. We can worry about the weather or a dress. We can worry about our old age. We can worry about things that we can have absolutely no control over.
Our human mind takes the primate problem of stress to a new level. For we have made culture itself our main evolutionary strategy. Culture, or the dominant social environment, is how weak hairless apes have adapted to the world and have become the dominant species.
The human mind literally creates the world we live in.
It takes in all the data and creates neural patterns in the brain that define us. Repeated thoughts and repeated reactions literally carve pathways in our neurons. For instance, if you were blindfolded at birth for 3 years and then the blindfold was taken off, you would be blind and never be able to see. What will have happened is that the pathway in the brain for sight would never have developed. Once it missed the window, the pathway will be lost forever.
This biomechanical brain body function applies to all animals. What is different for us is that the same neuron wiring process is also set up, or changed, by how we think and by how our emotions work. How we react to our social environment creates our ego and constructs the reality that each of us live in.
So is there an ideal social environment for humans to develop to their full and healthy potential? Yes, of course there is and it is the same environment that has set us up to thrive when we eat and when we use our bodies.
Our Ideal Social Environment
We lived for millions of years as wandering Hunter Gatherers. Just as this experience has shaped our diet and our body, it has also shaped our social needs.
We are designed to live in a very small, close knit and interdependent unit of people. This unit is both where we have our home and also where we work. Our children are raised collectively in it. We grow old in it. It looks after us and we look after it. We rise or fall according to how this unit fares. We are both the unit and also individuals.
Being hunter gatherers, we have very few possessions and so cannot know the idea of property. We cannot imagine owning any thing or anyone. We don't own another adult and we don't own a child. We don't have a plan for another person. Not being owned by anyone, we have a low need to please anyone. Controlling others or being controlled by others is inconceivable. We are part of the group but we are only reponsible for ourselves.
We live in very small communities. Most human tribes were less than 35. Our social complexity is low. We spend our entire lives living, loving and working in this small social world. We know where we stand and we know where others stand. Relationships are predictable. Our place in this community is directly related to what we do and to what kind of person we are.
Our status is controlled by our own actions.
At the core of this social environment is the socio economic culture. How we get our food drives every part of it. Not only does Hunter Gathering mean that we are mobile and cannot own property, it is also a very efficient way of getting the food that we need. It only consumes about 30% of the day on average. It gives us the time to have the right relationships.
Time is in abundance. Time is key for the development of the children. Time is key for all development.With time, there is time to develop naturally. Nothing is forced.
The children are also not tied to only two or one adults but to all the adults in the tribe. Girls, teens and grannies all look after the needs of all the young. Young girls and boys learn directly from all the adults about how to behave and how to work. Mothers are supported by the whole tribe. Men transform boys into men and model what it is to be a man. The elders hold the wisdom and the stories.
All have the time.
At the centre of this unit is each individual. As an infant and as a child, this individual has been raised in the ideal social setting. It does indeed take a village to raise a child. The child has constraints but also great freedom to explore the world and herself. Nature plays a large role in this. There is time to connect to nature and to ourselves as well. We draw comfort from nature. All make their living from nature. People understand it at a level of detail that we cannot know now. Nature has its own time and shows us again that development cannot be forced. All things grow on their own timetable.
Nature sets the course.
As we observe nature's rythms, we also start to see that our death is not a final stop but a step in the great cycle of nature. Humans are the only species that we know of that knows of its own death. But with our place in nature secure by living in it, this fear is lessened. We can grow old gracefully. We can embrace our time here and our time to leave. We need no faith to know that all is a cycle. Death in this context is only part of a continuum.
This then is the social environment that humans have been shaped by millions of years to do best in.
This is a social design that has high meaning, high control, has high intimacy, high trust and lots of time. All of this in the setting of nature herself, our guide and home.
But we don't live like this any more.
Our Current Social Environment and Why it Makes us Ill
50% of us now live in large cities surrounded by millions of strangers. We have to ignore other people to cope with this. People have to ignore us. We have to live in isolation. There can be very little intimacy or trust in such a setting.
Many of us also work in large bureaucracies where all is utility. We are told to leave our true selves at home. We work with strangers. We compete with our colleagues. There is no close and interdependent community. We work not for the group and so ourselves but for THE MAN. We are all expendable. We do not share in the rewards or in the plans. The modern workplace has no meaning, no intimacy. It has no trust. It is low control by design.
The home and the workplace are also physically separate. So the demands of working and raising children are in perpetual conflict. Work and Life cannot be resolved.
At the core of all of this is the socio economic system of consumerism. This has made the accumulation of things and of money the purpose of life. We hope that a thing will add to our status. But we find that things offer only fleeting glimpses of status. For, our status in this system is granted to us by others. We are born into it or not. We go to the right school or not. We get the right job or not. We lose our job or not. Because status is granted by forces outside of our control, we worry about it all the time. Our status is never secure. Money as a purpose is not enough.
Obsessed with owning things, we seek to own people as well. We own our spouses and our children. We own our employees. We see them as reflections of ourseves just as we see our cars. We have plans for them. We need to control them. We seek control where it cannot be found. And they all have plans for us too. We all judge and blame the other for our own feelings and lives.
We are helpless and so have little control in the essential parts of our lives. For most of us have no real skills at all. Many of us can do almost nothing in a practical sense to look after ourselves. Few can cook anymore. Few can make or fix anything. The mass production world has deskilled us.
We depend on uncontollable forces to feed us, pay us, heat us and give us shelter. If anything was to go wrong with these external forces, we would not know what to do. At a deep level we know this and this sense of having no control eats away at us.
In this context, we struggle to raise our young.
The demands of the modern culture and the modern workplace are destroying the viability of the family as the place where we raise the next generation. The hours at work take time and energy away from our core relationships. Many now look at their spouse in the same utilitarian perspective that they have learned at work. Consequently, many of us live alone or raise children alone. Many parents are isolated and live lives of desparation. Mothers and children no longer have the tribal support they need. Our children can so easly get lost.
As do we all when we get old. The elderly are lost too. Old age is to be feared for it is to be alone and worthless. The old have no place anymore but live too long.
Most people are cut off from the natural world. Who ses the night sky anymore? Who feels the seasons. We have no guide for life and how to live it. So, death becomes a terrible thing. Many of us try and distract ourselves from it. We try and look young. We behave badly. We deny death.
By accident, we have created a culture that is utterly alien to human life. A huge gap has opened up between the social environment that we were designed to thrive in and the one that we live in today. No wonder there is an epidemic of chronic disease.
So the question of our time is "Can we get back to a social world that is good for us?"
I think we can. For the issue is not to change the world, which is impossible, but to change ourselves.
How to recreate the social world that we need
We can find a real tribe with all the meaning and support and status that comes from that. We can live in a small place. We can use the hunter gatherer economy and lifestyle and so find time and stop obessing about things. We can unattach from the need to control and to be controlled. We can find nature. We can find ourselves. We can become free from fear of death.
It is a matter of choices. Here is my story as a guide for how I was able to return to a life that is very close to that of a Hunter Gatherer.
Lose the Job, Find Yourself and Find a Tribe
In my own case the key to gaining control of my life was to give up on having a job. In my book, You Don't Need a Job, I do my best to show you why you will be better off financially outside the job world. In this book, I will show you why you will be healthier without one.
I did not start with a plan. My new life began with my being miserable and not knowing why. This was of course a very stressful and unhealthy time for me.
Like many people, I went into a career because it pleased my parents and I could made a lot of money. I was good at this chosen profession of Banking. But as the years went on, this work satisfied me less and less. It seemed that I was playing monopoly. I was also trapped by the money. Only crime paid as well!
My devotion to this career also affected my family. I had been proud that I was a good provider, but my wife and kids wanted something else. They wanted me. They wanted my full attention. And this I could not give them. For this kind of a job took all of me and maybe more. I became a ghost of a man. Unable to give my attention to those that I loved.
This was a miserable time for me. All I knew was that my life did not work anymore. I had no idea what to do. But then, by coincidence, I had dinner with an old friend who knew exactly what was going on. She told me that I had to get out of this life and that the clue to my future would be in finding out what truly made me happy and making this my goal. She told me to keep my eyes out for the right people who could help me.
So, with no more plan than that, I left the restaurant even more scared than when I had arrived.
Not a week had gone by when the Chairman called me told that he was tied up and could not see his next visitor, Dr Fraser Mustard, who was a bit weird. As the weirdest man in the bank, Al thought I might fill in well for him and could I come over. It was one of those moments. I found the man. In finding him, I was also able to remember what I really liked to do.
I loved working on big academic problems. I loved the research. I loved how patterns would emerge. I loved to wake up in the middle of the night and find that my sleeping mind had solved a problem. I loved the interplay with others who shared a common problem. I loved the hours and how I used lots of free time to cook a problem. I loved the setting and the feeling that it was all up to me. For at Oxford, you are treated as an adult and left to your own devices. No one tells you what to do or how to think. You are expected to do the work yourself.
I wanted to take the way I worked at Oxford and make this work my life.
Fraser lived for big problems. At the time he was working on the Determinants of Health, and on the power of the Early Years to determine our development. I was responsible at the time for the health of the bank's employees and their families. He exposed me to ideas and people that I could never have found on my own. I have been working on these ideas ever since.
I became intoxicated. It was like having an affair. I would spend hours every week outside of the bank working on his problems. I had never worked like this before. I had always been in the job hierarchy. In the job world, each party reacts to power. In a network each person reacts to the humanity of the other person! This was utterly new to me. This new way of working for peers and for the sake of finding answers to shared problems helped me lose a lot of my corporate armour.
Fraser himself was the epicentre of a great network of people working on big problems. Getting his trust and respect was very hard. But if you had his trust, then you too could join. This is what happened to me. When the day came when the Bank and I parted company at last, I had a network and was able to reject the job as an alternative.
I tell you this story because while it is mine, it has an aspect that I think is universal.
In the myth of the Hero's Journey, the starting point is disease. 'Dis ease'. There is a time of pain and problems that seem insoluable for they have no known cause. The job brings this today. You might not have one and think that you need one. You might have one and think it is wrong for you. You may have one and fear that you might lose it. Your job may conflict with your family. It may conflict with the real you. There may be people at your job who make you feel ill. Your job may have mad rules. You job may be about nothing that you value. Jobs steal time from us.
The job world is the source of most of the stress and so disease that we endure today. The job splits us into conflicted parts. When we don't have the job, we start to come together again and become the person we are inside.
Get Time Back
Once you start to earn a living for yourself, you will discover that you have control over the most precious resource that you have. Time is all there is. Once I was making a living, I had control over my time. This is where the major rewards of being a modern HG shine through. For the job robs us of control of time. With no control over time, we are always in conflict and so stressed.
But it took me time to get used to having control over my time. At first I felt guilty. How could I go shopping midweek? How could I take a long lunch? How could I go away? I had been wired to be busy and to be at the beck and call of others. I think this all starts with the school bell. Like Pavlov's dogs, we are obessed with other people's schedules for us. It took me several years to accept that I was now in charge of my schedule.
There are other important changes to time that take place as a result of working in a tribal setting.
I found that my pace of work on my own, without all the distractions of all the meetings and all the bullshit at work, was much faster than my clients expected. They were all so busy doing nothing substantive that they could not keep up with me. I found that I had the time to allow my work to evolve. I no longer had to push mechanically at work. I could allow it to happen. I can have an off day and not be able to work and be relaxed that the job would still get done. I can get stuck, as I have with this book at times, and take a week off, and find that when I return the problem has been solved. I can sleep on a problem. I can play with data. I can be a hacker in my work. I can fit my work to nature's schedule and not to the clock.
Imagine how much less stressful this is? Imagine how much more satisfying this approach to work is?
Because I am so much more productive than those who have jobs, I also have lots of time in my life for the unexpected. The car can break down. I can react to a call to help with my grand children. There is no conflict. I can fit it all in.
There is time to do great work and also be fully present with my family. What more can you ask? Most of the conflict and stress that was central to the job and family has gone away.
With time, you can invest in relationships
In my job life, I issued orders or took them. There was not much time for anything else. The task ruled. Working like this all day for decades, affected how I was outside of work too.
I lost the ability to listen to other people and to feel empathy. As I lost this for others, I lost it for myself too.
Primates have to groom and to be groomed to keep healthy. We have to invest time in our important relationships. As humans, we groom by hearing the other out. We groom by listening and by being heard. As a man and as a husband, it took me years to work out that my wife did not want my advice. She wanted to be heard. It took me longer to know that I too needed to be heard. There is nothing more comforting than to be heard. There is no greatere social gift than to listen.
But in the job world there is no time for this. No time at work or at home. So with no one to hear us, our stress builds and builds. Working for myself changed this. I now had time. I could be open enough to hear. I had the time to pay attention to a few friends.
Finding your voice
In the job world, I spoke in that "Corporate" voice. I spoke memos and jargon. I was clipped. I seemed sure. I was always on the parade ground. But that is not a voice that friends or lovers use. They use an intimate voice. They speak from the heart. I had lost all of that. I had no clue how to speak from the heart.
It was blogging that helped me find my authentic voice again. It was blogging that helped my find others whose voice attracted me. At first I wrote more memos. But over time, I started to be personal. The more personal I was, the more I connected with a few people who I had grown to like for the same reasons.
Now 11 years later, I cannot speak corporate anymore. Not just in my writing but in my actual voice. I have retrained my voice to be me and not some role I played in my job. I could never have done this while still in a job. For what employer can allow an employee to speak her mind or worse, her heart?
In the job world we speak from a limited script. We lose our power because we don't use our own voice. We instead try and be clever rather than be true. Listen to Martin Luther King vesus any politician you can think of and you can hear the difference in a second.
When we speak our truth, we attract people to ourselves legitimately. We don't have to be in conflict with who we are. There is no stress and there is much power. We can be ourselves. We can strengthen our relationships with our tribe and so get more of what we need from our tribe.
Live in a small community, lose your armour and slow down the pace of time
As I became better at earning a living as a result of knowing my passion, being more human and having a good virtual tribe, I took the next step. I left the big city and moved to a tiny physical community.
With the web, with a passion, real skills and a real tribe, it is much easier to make a living than ever before. You don't have to live in a big city to have opportunity. Again, much more on this in You Don't Need a Job.
Remember, at the core of our evolved social design, we do best in a small social setting. It's all about identity. As much as we like our anonymity in the big city, our deeper self craves the reality of being known. We bask in being able to go into the store and be recognized. We like to be waved at by people in cars. We enjoy naturally stopping in the street for a chat. We are being groomed and we are grooming.
After a few years of living on Prince Edward Island, population 140,000 people, I lost my social armour. I recall visiting my son in Toronto after a few years in this small place, and I could not help myself from saying good morning to people in the street. "Dad! We are in Toronto now!" he said embarassed.
Living in a small place melts the armour that we need to cope with life in a major city. Once the armour comes off in the street, it comes off at home too. I can see now that 'Armoured Robert' came home everynight. I had played that part so well and for so long that he became me. Now vulnerable Rob lives in all the parts of my life.
There is another time element in living in a small place too. This time the issue is pace.
As much as we think we love the pace of the big city, once you have decompressed and adjusted to the pace of the small, you will love the way that time stretches in a small community. The smaller the community, the slower the pace. The slower the pace, the fewer the expectations on time. The fewer the expectations, the less stress.
I have learned that time is not a matter of measured minutes, hours, days, months or years. Time is in fact a very elastic concept and is felt rather than measured by the clock. In the job world, the clock rules. I was always out of time. In the tribal and rural world, I always have time.
Stop being possessed by possessions and so by money
Living in a small place also enabled me to cut my ongoing costs a great deal. Remember, Hunter Gatherers have few possessions. In the modern world, we all try and increase our stuff and so need more money. In the HG world, I try all the time to reduce my need for stuff and my structural costs.
This means that I need less to work and earn a living and more and more I can be free. For again, the HG lifestyle means that you only have to work for about 30% of the time. I go into great detail on this point in You Don't Need a Job.
On Prince Edward Island, housing costs are a fraction of the big city. It is a lot less stressful to need less money to pay for things that to strive to have more. In my job life I needed to earn at least $300,000 a year to break even. Today I live well on $30,000. In You Don't Need a Job, I explore how to see the costs of a job and how I made this shift to needing so much less.
Money can be a huge stressor. To make this stress go away is not to choose poverty but to choose simplicity. It is to make structural changes in how you live so that you don't spend too much on housing, transport, heat and food. It is to find ways of exchanging time for money. For if you do this right, you will have lots more time. When I had a job I had a time deficit, so I paid cash for everything. With time, I need much less cash. With time I can cook real food and even grow it. With time, I can heat with wood. This also gets me active and outdoors and makes my diet healthy. It's a positive cycle.
Having time is I think the new status too. I used to have lots of things, smart cars, smart houses, smart clothes. It looked as if I was succssful. It appeared that I had high status. But I was one pay cheque away from trouble. I was as much a slave as most people.
Status and control are the main social drivers of our health. With control over my time and high freedom, I have real status and control. I have met most of my health needs in the social sphere. No one can take this away from me. I am in charge of my place in society as a HG would be.
But there remains another layer of challenge to get free from. We have to get free from the shackles of our family experience and we have to get free from our fear of death. This is the really hard work and I was not ready to start this until I had got a lot of what I have just talked about well under way.
Escape from the shadows of your nuclear family
Our reality is created by how we react to our home culture before we are 3. Our brain is wired for life then. This experience can make us stronger or weaker as we age. We sometimes need to take stock and make a correction.
How we are raised affects the trajectory for how we develop over our life. It affects how we learn or not. It affects how we behave or not. It affects our health. It affects our emotional development too. Will we grow up as a real adult or remain stuck at some earlier point? Will we keep playing out our own family drama and story in the other parts of our life? Much is determined by what we experienced before we are 3. Many issues that we not resolved then, play out in our adult lives.
The modern workplace is full of people playing out these family dramas. Mine was, the Missing Father and so I looked for "fathers" who would finally accept me. Outside of work I played out the Missing Mother and looked for "mothers" who would love me. All of this was of course very bad for me and for all I chose to play these games with.
Many of us, whose development has been stunted by a dysfunctional home, stay an infant or a child. Many who have been bullied, bully. Many who have not been loved enough, love too much.
As I got to be more me, the demons of my childhood that had lurked in the background, moved into the foreground. This was a terrible time for me. When I had been so busy, and so shut down, I had been able to surpress this awareness. It seemed to me that my new freedom had come with a curse.
I did seek professional help. This can help. But I found a better way. I found a way that I could put my demons aside for myself. I could rewire my brain. This process is called neuroplasicity. Though I did not know this at the time.
In the HG world, we all know everything about our ancestors. In the modern world, we often know nothing. My starting position was that my parents were uncaring infantile people. That I had been dealt a bad hand by them and that they were not good people. As these feelings surged up, I became very angry with them. I judged them cruelly.
This was very stressful. Again, I was stuck. I knew that this was very bad for me. I could not change what had happened, so what was I to do? I had to find out why they had behaved the way that they had. I had to find out why.
As I began to learn about their lives, I began to have compassion for them and then shame at how cruel I had been. I saw how they had suffered. I started to understand. I looked at myself and found no parental paragon either. Who was I to judge? I started to change my story from "Poor Me" to "What Can I do Now?" I started to rewire my brain. I created new thought habits.
After a few years I stopped feeling bad at all. I had rewired my brain. I had new tapes that were better and productive. I could love my parents again. There was in the end nothing to forgive. All this corrosive again, fear and pain fell away. And with that, all the related stress.
I had thought that I was a grown up adult in my 40's. I was not. I was still playing out my childhood losses. My observation is that most of us are. The nuclear family is too fragile a child raising unit. Most of us have less than ideal social settings for this critical part of life. Most of us are raised as children by grown ups who are in many ways still children themselves. The job world places them in an impossible conflict.
It is now time to start to rethink the family again.
Work to create a real tribe
I am reaching the time of my life when productive work is less of an option. In the HG world, 62 year old men did not go hunting. They advised the hunters. They told stories. They adjudicated disputes. They looked after the young. 60 year old women also made the same kind of shift away from the primary economic work.
In my 40's I sought a work tribe. I now seek the larger and more complete tribe. I seek the ideal which is a unit that provides both the economics AND the full social setting for all ages. I now seek a place in such a tribe that is mainly a nurturing role.
In my 60's, my tribe is evolving. Before, it was mainly about making a living. It could be virtual. It is now evolving onto a close group of people, some of who are related, who are starting to look after each other in practical sense. It is more a close physical tribe.
And we we do this, we extend this care to our adult children who themseves are struggling with small ones and to each other. I don't know how this will work out. But I know this, if I get to 80, there will be no seniors homes. I had better be healthy and I had better have a network or I am in big trouble.
As I look ahead, I see that all the institutions that we take for granted can fail. I don't trust that the food system will feed me. I don't trust that energy will be easy and cheap. I don't trust that the education or health system will be there. I don't trust that pensions or investments will be there. I don't trust that the government will be there. I don't trust that even money will exist. I certainly don't trust that the weather will be the same.
I cannot control any of this. I can only get ready myself and help my tribe get ready. I see the great work of our time as this project. Getting ready to be more resilient so that we have half a chance to cope with the vast changes that seem inevitable.
For surely it was the Tribe that enabled humans to cope with all changes for millions of years. It is the ideal social container for challenging times. It enables each of us to have some control in a world where there is none. The wonder of this project is that there are millions of people out there who are also involved. We can all help each other. We can be supported by each other. What a feeling of community!
But there is one further step. One thing is certain. That you and I will die. I think that the final stage in our development as a human is to learn to accept death itself. For death is the last great stressor. For if we deny it, we are in conflict with our deep truth.
Get a dog, get outside and stop worrying about death
We are the only species to have self knowledge about death. This is a terrible burden to carry. In the modern world we don't. Most don't think about death consciously. Most deny it. We try and be eternally young. We worship youth. People hope that there will be a god to save them. But the truth of our death eats away at us, if we deny it.
If we deny our own death, we prevent oursleves from truly enjoying life.
I was as frightened as anyone can be. But I am not scared of death anymore. As a result, I am at peace. Peace that I have never felt before. So how did this happen? It mainly happened as a result of me spending a lot of time in nature. Living in a rural setting is a start. It happened because I had the time to be open.
I also have a very good spiritaul and nature advisor. I have a dog. Every day, rain or shine, snow or sleet, clear or windy I walk the dog. We take the same routes. Each day, we see the differences as the cycle of life plays out. We see the first wormcast that heralds spring. We see the last leaf fall. We see how the leaves change colour and how the wild flowers rotate. We see dead animals. We see birds nesting and chicks fledging. We see how everthing has a cycle.
The dog takes me there. She opens my eyes to the detail of all this life and all this death that surrounds us all.
My dogs also show me how to enjoy life. The dog is excited by just waking up in the morning. The dog loves every meal as if it might be her last. Dogs love to love me and they love to be loved. They embody love. They love me as I am. They want to be close to me all the time.
And their short lives show me that I cannot avoid my own end. In 12 years Jay goes though all the stages of a life. The bounding puppy, the mad teen, the stud, the calm older male, the gentle soul and then only the memory.
Knowing how precious every day alive is, I too now get up in the morning glad to be alive. I too eat every meal with gratitude. I welcome people into my life. If I had a tail, I would wag it.
The greatest irony has been that allowing myself to be certain of my death has made my life so much better. After all, what can happen to me: I am going to die anyway? I used to worry about all sorts of things. But now that I know that I will die, and that this is OK, all my projects and hopes have a perspective. Now I can live for the moment.
I could never have got to this place without having taken all the other steps first. I write this aged 62. I cannot know how I will develop further. I only know that giving up the job, and the culture attached to the job, has set me free to get back to the life that all humans are designed to live.
We can go home
I don't live in a cave and wear skins and hunt mammoths but I hope that I have been able to show you that I have made a lot of progress in living like a hunter gatherer in today's world. We can eat like one. We can use our bodies like one and we can live in the same kind of social environment as one. We can have a spiritual life of a Hunter Gatherer. We can do all of this and still be in the modern world.
It's a matter of choices and design.
The big choice is to leave the world of the Job. For it is the Job that forces us into eating poorly. It is the Job that sits us down all day. It is the Job that takes us away from our ideal social setting. It is the Job world that is at the cause of all our chronic illness.
500 years ago, pilgrims came to America to enable them to escape the prevailing culture of the old world. I think that we too are pilgrims. We too have to escape todays prevailing culture. There is no new land but there is a new world. It is in our mind. When enough of us go there, we will change the larger culture.
But for now, each of us can do this. We need to wait for no one. It is in our control and the path is known.
....... we have not even to risk the adventure alone; for the heroes of all time have gone before us; the labyrinth is thoroughly known; we have only to follow the thread of the heropath. And where we had thought to find an abomination, we shall find a god; where we had thought to slay another, we shall slay ourselves; where we had thought to travel outward, we shall come to the centre of our existence; where we had thought to be alone, we shall be with all the world."
Joseph Campbell, Hero of a Thousand Faces
The Science
As you can see, this is a very complex subject. I can only offer you a survy here. Here is a link to a companion website that I have set up up where you can see a lot more. On the site, you will find a mass of articles, videos and posts that take you much deeper.
Here is an introduction to the best scientists in this field. You will find more of their work on the site as well.
Do you work at the bottom of a hierarchy? Then you will get ill and die 4 times earlier than those at the top. Married to your work as a man? Retirement will kill you in 5 years. Are you at the lower end of the vast income inequality in the US and the UK? You will get ill.
How much control and Status we have in life directly affects our health. Medicine and access to healthcare has nothing to do with these differences in health outcomes.
Dr Sir Michael Marmot is the world's leading authority on how human social environments affect our health. Cubicle land and factory work is lethal. Large differences in national income is lethal. Inequality is lethal.
His research on the Brtish Civil Service is a landmark piece of work that sheds light on how this works.
So how does this process work? All primates get stressed by social issues. Zebras only worry at the moment when they are being chased by the lion. Baboons worry all the time about their place in the troop. Humans worry even more. Our consciousness can be a curse. We can worry oursleves about the mortgage or global warming too.
Sapolsky is the leading scientist studying the primate and human stress mechanism.
Sapolsky is a brilliant scientist and a remarkable explainer. His lectures online are very accessible and offer massive insights as to why we, as the most social of all animals, have to pay attention to our social environment and do all we can to make it less stressful.
And what to do to cope with our stress? I have two favourites here - The late Dr Viktor Frankl and the very much aliveDr Gabor Mate.
The single most important social factor on our health over a lifetime is the social environment that we had from 0 - 3. When I say 0, I mean from the moment of conception. Children's world view, and so their stress reaction to life is set by 3. This setting drives the development trajectory for life.
Professor Doug Willms is the authority on the link between family culture and long term development outcomes for children.
So how we parent is key. If we are too top down, use power all the time, don't touch enough, speak to but not converse with - all signs of a stressed person - then we set up poor conditions. If we allow everything, let the child run her life, don't stand firm on important issues, are distant - then this too has poor outcomes. The worst being when each parent has one of these two styles.
The best outcomes are from parents who stand firm on important things but allow a lot of room for all others. Who have lots of conversation with their infants. Who touch their kids a lot and who are affectionate with each other.
This style of parenting is not tied into any one income level. So many of us have been captured by our own stress response to the corporate world. It leads me to believe that earning our living in a different way will help.
Social Environment Parenting - The Late Jean Liedloff
Just as Michael Rose goes back in time to show us a lifestyle that is suited to how we evolve, so the late Jena Liedloff does this in how best to parent. Her work is the manual of our evolution and is very accessible and pragmatic
PTSD is a massive issue in the west today after more than a decade of warfare. Here again people have been shaped by their environment. So is the cause of PTSD the trauma of seeing or doing bad things?
Shay has discovered that this is too simple a perspective. The deeper cause of PTSD, and all illness caused by trauma, is Betrayal. This is why incest is such a terrible act as it involves the worst betrayal of all.
PTSD is driven by bad leadership. A military that has leaders who care not for their men but for their careers. A political class that goes to war and exploits the patriotism of their young men for a game and not a real cause. A system that rotates men too often and breaks their attachments.
This betrayal was seen everywhere in Vietnam. All that was wrong in Viertnam has taken place again in Iraq and in Afghanistan. As those involved learn that they were betrayed, their feelings will deepen. The PTSD epidemic will grow.
Shay also has done the work to find a way for these men to come home. And it is not drugs or experts. It is in helping people help each other. It is in helping them find a tribe again. Medicine and conventional therapy does not work. Only the tribe can offer the trust required to quiet the demons.
How do we change our wiring? If we have depression, PTSD, had a shitty childhood, have addictions? There is no pill. There is no smart man in a white coat. But there is a proven social process and journalist Alan Deutschman has made a lifetime study about what this is.
His work, Sapolsky's, Mate's, Frankl's and Shay's all intersect and support each other. Alan offers a special clarity and great case studies.
And so what is this kind of change that Alan reviews so clearly? ? We have to rewire our brain - literally. Our beliefs, or our automatic responses to an event, have been hard wired in our brain by repetition. The more times we go to THAT place, the faster we go there. It is like a river cutting a chasm.
Doidge and Sapolsky have unravelled how this mechanism works and are using the understanding of the plasticity of the brain to change the wiring.
Dr Norman Doidge has had great success in helping people rewire. Even people with schizophrenia.
The PEI Government plans are underwater by over 400 million with most new retirees retiring in the next 10 years. The market is not going to make up the difference. We live in different times. The pensioners cannot make up the difference. And the PEI Taxpayer - most of whom don't have a pension - cannot do this either.
Some facts. PEI Tax revenues are about $800 million a year. So $400 million represents about 50% of one year's revenue. Healthcare costs will rise to $800 million by the middle of the next mandate.
PEI cannot pay the $400 million for the government pensioners. And PEI cannot pay for $800 million of healthcare costs either. The next 5 years are going to be "interesting!". The contract that we all thought we had signed up for - pensions and healthcare will have to be broken.
This is the only hope to get anything. You are going to have to take less. You are going to have to do what the rest of us are going to do - live in a different way.
And Ms Bovyer, $16,000 a year from investments is a lot of money. That represents well over a million dollars per person. How many Islanders have that in their savings?
So what does living in a different way mean? It need not mean eating cat food. But it does mean thinking like this:
Do you need to live alone in a one generation household? Housing is your big expense. What abut your kids? The extended family is the unit that helped us all along before pensions
What is your exposure to oil and heating costs? Have you insulated your home and done everything to reduce your energy costs. This is another big risk area.
Grow food. You will have lots of time. Run chickens, grow veggies. Put in a hedge on higher food prices.
Do you live in the country where you have to drive everywhere? A car is the single most expensive thing you own and it exposes you to oil price increases. You will also reach a point when you cannot drive. Live in town!
Car share and help your neighbours - they will do the same for you
The average male Islander becomes disabled from chronic illness at 65! He lives for another 10 years unable to cope on his own. Get well!!!!!!!!!!! BTW the average PEI woman follows this track 5 years later
This kind of living is not unfamiliar to many Islanders. It is just below the surface ready to come out again. If pensioners spend all their energy fighting the $ battles that has to be lost, then they lose everything. But if you work to help each other make this transition back to how your grandparents lived, a much better future for all lies ahead.
I had dinner with a cousin this Thanksgiving (Canada). Much of what we talked about was our concern for how we were going to make it financially as we got older. Her mother just turned 100 and still lives alone and drives! Neither of us have a pension. We do have some savings - a lot more than most - but they are not secure and will not be enough to get us to 85 let alone 100.
How are the boomers going to make it? How am I going to make it?
How about you?
Do you have a pension? Can you rely on it being there? Pensions are I think a thing of the past.
You may have one now. But look at places like Greece. The Gold plated Government pensions are being taken away. On PEI there is a shortfall of more than $400 million. You may hope that the market will get this back - but I would not count on it.
If you have one, do you also think that your kids, who have so little, will allow you to tax them further so that you can play golf? Would you feel good about further impoverishing our kids to help you?
My bet is that we will see a big roll back in existing government pensions. The Canadian government is going to rollback MP's pensions. My bet is that this is a first step before they roll back Public Sector Pensions - they have to get the politics right. In the private sector, they are going away. Think Nortel. Think GM.
So, can we save enough? We are all encouraged to save. But most have not. Here is the American picture - few Golden Years ahead here!
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I see from here that it is too late for most Americans. How does this look for you?
And even if you have saved. With low interest rates, our saving also do not offer much cash flow.
Only a tiny percentage - the old 1% - escape this.
So what to do? I cannot rely on my savings. I have some but not enough at current rates to keep me for another 25 years. I have no pension to speak of.
This is where I am going
Radical downsizing - no debt! Done
Reduce need for cash - Co locate - bring back the extended family - we are cheap child care! One kitchen - one set of taxes etc - working on this - This is the hardest one to do and will take a few more years to achieve I think
Reduce the need for cash - Work on your community - so much of what you pay cash for - you may not have to if you are a contributor - mow lawns - cook meals - share stuff - so that you get it back - my plan is to do as much as I can in my community in the hope that it will become the new normal to help each other for things that we wou,dhave had to pay cash for before
Invest in real things - Avoid equities as there is too much risk and too little time - invest instead in a better energy cost for your home - make your home capable of housing 2 families - add a garden - grow food - doing all of this - new heating - windows - insulation - much smaller house etc
I am still quite scared. How about you. This is all so unkown and so dangerous. And it will affect me and YOU! Few of us will escape and Hope is Not a Method.
I have been very upset this week after hearing of Rory's death. We knew each other but were not close. I feel so strongly because his death reminded me of my own father's death. My own dad died suddenly at home aged 55. I believe that Rory was 54. I was stunned by my father's untimely death and Rory's death has brought all those feelings back for me. Grief and also loss of what might have been,
I extend my heartfelt sympathy to his wife and children. I can only assure you that your dad will live on in your dreams and in you and your own lives. There is hardly a day when I don't ask his advice and get an answer. One way or another he guides me still.
One of the lessons that I have taken away though is that I am determined not to do things that I know will put me at risk of following his example. His life and then death is the motivation that I have to find a better way of looking after my own health.
I want to talk more now about loss of what might have been and the lessons of an early death that we all can share.
I also remember the shock that his death created at his workplace. Some who were very close to him were also very angry. They felt that my father had in a way cheated them by not taking care of himself. They missed him as much as we the family did.
I get a sense of this too circling around Rory. We enter perilous times. Not having him at the centre is a massive loss. Not just for his colleagues but for all Islanders. I say this with no party affiliation. We face such dangerous times that not having him threatens us all.
For as we all see from this budget on, the time bomb that is created by our demography and our systemic poor health on PEI puts us on track for bankruptcy. In 7- 10 years, our health care costs will be nearly double our PEI tax base. This is not just because we are older, it is because most Islanders will have at least one chronic illness. It is also that we don't have enough young. Who will pay the taxes when most of us will be 65 and not have a pension?
The challenge of dealing with this is of the same magnitude as England in 1940 facing Germany alone and with nothing. The end of a society is on the cards.
This has got nothing to do with this party or that party. It has to do with all the assumptions that we have all agreed to for how things work.
Can we be confident that the Feds will come to our rescue?
Will big business come to PEI and open up plants and give us all jobs?
Can we tackle the healthcare costs simply by using cuts?
Will oil prices go down?
Will our kids stay here and pay all the taxes?
Will retired public servants keep their pensions while others starve to pay the taxes so that they can?
Will immigrants flood to PEI based on current conditions?
Will working for hours still be viable for many?
Will farming as we know it no longer damage PEI?
Does healthcare make us well?
Is school preparing our kids for the world that is here and in the future?
Do we not all believe that these are correct? Until now the feds have come to the rescue but this is not the trend is it? They are cutting deeply here on PEI. If oil hurts now what will it be like when it is $3 a litre? Do you really think that your $50K a year pension is safe when I and others have nothing? When the healthcare budget is $1.2 billion, what will be cut to continue to pay for your knee surgery? Look at our kids today. How many of them can stand on their own two feet?
And all of this is converging in a 5- 10 year period. There is no time left.
So what to do? We cannot give all of this to government. It's our challenge. We have to talk with each other and face the facts. Then government can act.
We have done this before.
Back in the 1830's Islanders were in the thrall of the absentee landlords. They could see that they had no future as a tenant or serf society. So they got together and threw the landlords out. The golden age of PEI followed. 15,000 independent farms and a complete economy that functioned around them.
We can do this again. It is our only chance. But we have to start by looking at the mess we are all in and stop pointing fingers. Our job is to grow up and become pioneers again like our great grand parents.
It would have been good to have been able to talk more with Rory about these things. For as we the citizens talk, we have to have open minds in government too.
OAS offers most seniors about $500 a month. For many here on PEI it is a life saver for few have corporate or government pensions. For a couple it is food and heat.
Part of me wants to protest and the other part of me has to start to plan for this reality. For the reality is this. There will be just too many of us old folks - ESPECIALLY in Atlantic Canada.
So what can we do? Surely first of all have a conversation about why we cannot expect government to pay for health care and our pension as we expected. Look at Europe and countries like Greece who are the early birds in what will have to happen given our demographics - the deal we all signed on for that government would look after us has to be broken.
I feel that the wrong use of my energy is only protest. My real need to is fill the gap that will take place.
This is why my first move has been to get control of my health. To go from a pre diabetic 60 year old weighing 205 with a lot of visceral fat, knees that are giving out and early arthritis to a 61 year old weighing 165 lbs. No visceral fat, knees back in good working or and no signs of arthritis. I am now set to be fit and active for the rest of my life. For as we all know - without our health we can do nothing. I also can avoid being a burden to Robin and my kids.
The next move is harder to pull off - but I think that many of us will have to go here. It is to live once more in a the full extended family setting. Where at the core there is a deal. we the old ones do most of the heavy lifting with our grand kids - maybe home-school - certainly carry a lot of the rearing part. Where we save by being able to share big ticket resources such as cars, appliances taxes etc. Where by having such a job, we remain actively employed with a real purpose and a need to care and get up every day.
This is hard because we have all placed independence so highly - we have lost the cultural norms of how to do this well - how to be close yet apart.
But I cannot see another way of getting through the next 25 years. I have no pension to speak of but decent savings - but not enough to make it on our own. Our kids are fully stretched just coping with work and kids as most young couples are. We have capital but less of a chance to earn an income. They have no capital but good earning power. The kids suck all their income up. There is a deal in here somewhere.
So what about you? Will you depend on the health care system to fix you when you are ill? Do they get you well today even when you are ill? Can you afford to have a chronic illness?
Do you have a pension? Can you really rely on this over the next 25 years? Look at the Nortel example. Look at what governments are being forced to do to pensioners.
Are you like me and have no pension? Do you have a lot of savings? If so good but what are they invested in? Is even money a safe bet over the next 25 years. Look at the many countries where the currency has collapsed in value.
What if you have small or no savings and no pension? What is your plan? Can you trust that government will look after you? Look at the numbers - they cannot. They will tell you that they can - if they told the truth, you would vote them out! but In your heart you know they cannot make up the gap.
Over the last 4 million years humans have developed a very good organization for coping with uncertain times. It is called the Family or the Tribe.
I think that we can do well to explore how to bring this back for each of us - for I know no other way that I have any chance of making it without them.
We are entering a new age in all sorts of ways. One of the new things that we don't talk about much is what it will mean when most people are over the age of 60.
Our world has been designed and constructed around a normal of most people being young. That is most people being able to absorb higher costs. Over the next 30 years, we will face the opposite. As each year passes, more and more of us will not be able to pay more. We old folks will not have the money. We will have less and less and no where to go to get more. And there will be more and more of us.
We have not talked much about what the world will be like when most of us are old and poor. We have to. And we have to now.
The first boomers are 65 this year. PEI is very exposed. We will have one of the most age skewed populations in Canada. So what does this mean for you and for me?
Do you have a generous pension? I don't. Most don't. If you have one, do you really think it is secure? We can see right now in places like Greece where pensions are being cut. We have seen here that corporate pensions are not safe - Nortel. If you get a Government Pension today - how safe will it be when most other people have nothing?
How much money will you have per year for the next 30 years? At my best possible calculation for me it is in the poverty bracket. What about you? How much a month will you have over the next 30 years? Scary isn't it!
So we are entering a time when the basic assumption that next year there can and will be more money is off the table. But how the system works is based on the idea that there will be more money next year. So with the old assumptions, we are on track for a squeeze and then a collision.
How will I pay my property taxes, my heating bills, look after my health and have enough to eat. How will you? This is how I see these things:
Property taxes - They are 10% of my gross income right now. They are among the largest bills I have to pay. Unlike any other bill, if I don't pay them, I can be evicted from my home. This is the one bill that can make you and I homeless.
Cities themselves know how damaging these taxes are but have no other source of income. They are systemically starved by the higher levels of government.
In 10 years time, the majority of home owners will be pensioners. Their only asset will be their home. Can we still have a system that taxes people who will have so little cash in a way that drives them onto the street? What then?
I have not a clue what to do here -I do see this as being an "Impossible Bill" to pay. It would not be hard to see my property tax double in 10 years. It would be impossible for me to pay. It would be impossible for any senior to pay.
There has to be a new way to support our cities and not destroy our society. Time now to start talking about this.
Health Costs - As we get older our health costs go up. It is not unusual to spend $500 a month on drugs now if you have had a heart attack. At least 30% of adult Islanders will have type 2 diabetes. If you get this, you will have massive health risks and costs. About 40% of us will get cancer. The list goes on.
When most of us were young, we did not pay attention to this. Hey the system would pay. But in 4 years time, the PEI health budget will exceed our total tax revenues. The health care system will not be able to pay. Nor will you.
We cannot continue as if we did not live in a new time with new rules.
What happens when we are really old? -Worse, when we get to a certain stage, we cannot look after ourselves on our own. The current normal is that we go to a "home". Well my mum is in such a place. It costs about $40,000 a year after tax to keep her there. Fortunately she has a great pension from my late father. But few of us will have that. And even for her, with the world going as it is - is her pension a sure thing? What if she lives another 20 years? Will her pension be there? If it is not, how will I cope? I can't imagine how I would cope.
Many of us will be faced with this. The new sandwich generation of 70 year old people looking after 95 year old parents.
There will be 8,000 85 plus year old widows on PEI in 15 years time. That is a cost to PEI of $320,000,000 or half the current health budget. Stuffing us all in Manors just cannot work when there are so many of us. AND when PEI's ability to raise taxes and revenues will be so limited.
It gets worse. When we get put in an institution, our health collapses and the costs of keeping us ticking over go up exponentially. It is when we have no place in the world. So if we institutionalize the elderly, our normal now, their health care costs shoot through the roof.
We do know though that if the elderly can stay in their home, that this does wonders for their health.
No organization knows more about this than Canada's Veterans Affairs. What VAC have found is that the longer people stay in their home the lower the costs as they remain healthy. so VAC have a program of support, meals , cleaning, yard work etc that helps the frail stay in their home. This is much less expensive and better for all. It also offers a lot of work.
So here we go in a circle. This will have to be the way. For I cannot as a 70 year old look after my paralyzed mother. I will need help if she has to come and live with me. But if paying property taxes means that I have no home..... see what I mean.
Health Costs - The Hope - There is a way forward on health costs though. I am acting on this way ahead for myself. The chronic diseases that we all think of as normal - heart disease, cancer, arthritis, type 2 diabetes, dementia, Alzheimer's etc are not normal but are a product of our diet and how we live. In a year I have transformed my health and my aging process by eating and living differently. Aged 61, I have the health and the activity ability of a man in his healthy early 50's. I should be able to stay this way until I die.
We can PREVENT these diseases and we can age well.
My regular readers know all about this and if you are new to this - then dig into my site.
If we do not explore this opportunity, I don't see how we can make it through the next 30 years.
Food the Hope - What such a new way of thinking will do as a consequence is drive out a new food system. Eating right will all depend on access to real food that cannot be raised in an industrial way. Instead of a few big farms, we will need thousands of small operations. Instead osfus buying most of our food in a processed form from the supermarket, it will mean most of us buying food from local people.
This is a huge work and economic opportunity. It is a huge health opportunity too.
Energy Costs - Oil is like Property Taxes - Heating oil is up 25% this year over last. The heating bill is one of the non negotiables. Heating with oil costs Islanders about $200 million a year. That is the equivalent of a 1/4 of the total PEI tax revenue. So this is the largest family bill we pay. The average is I think about $2,500 a home.
We have no negotiating power with winter!
Helping out a few people each heating season will not work when more than 50% of Islanders will not be able to afford to heat their home.
We have to find a structural new way. It will have to involve reducing the demand - up to 40% can be saved with better insulation etc - and by changing how we heat so we are not exposed to the global oil price. For surely in the next 30 years, where do we see oil prices going? We have to have an energy strategy that is designed to reduce demand and to cut us off from the rosk of oil prices. No easy thing but there is a lot of thought already.
Food The Risk - Nearly all the food we eat comes from away. Nearly all the food we eat depends on oil too. On oil to farm and on oil to transport. We are so exposed. Look at what has happened to poorer nations, food is all but outside the budget of a family. We have to reduce our exposure to oil and our food. This can only be done, if we grow food in a new way.
Such a way of growing food and such a shift in diet - away from annual row crops that need oil and that contribute to the health crisis - to pasture based animals and permaculture veggies will offer a huge boost to employment. It is a win win win.
My regular readers know that much work has been done to see what such a system would be like and I will not go further here.
So here then is the bottom line for all of us.
IT IS NOT BUSINESS AS USUAL. In 10 years time most of us will be over 50 and many will be close to 70. We will be on very limited and insecure budgets. Our tax system, our approach to health, our approach to food and our approach to energy has to change.
Time is so short. We have to get a lot of the new design done and in action in the next 5 years if we have any hope of making it through the next 30.
Time to start the conversation. Time to help each other and time to help our governments do the right thing.
First they ignore you - then they laugh at you - then they fight you - then you win.
Today I am going to explore how we are about to experience all of this as we see the power of the Corporate World - more powerful than the Empire in India - go down. We see it now in media but we will see the final battle in the arena of health and food.
It is going to be in this area where the public will awake and discover how they and their children have been betrayed. I will show you today how betrayal is the key flash point of revolution that spreads the meme beyond the initiating cadre to the mass.
All Imperialists from Rome to Britain and the Institutional/Corporate World have had the best of intentions. For after all Rome did actually do a lot good things. But the price of Empire is loss of freedom. And in the end this is what we all want. Espcially if Empire can no longer offer good roads, peace and justice etc.
The road to Freedom often starts with a funny man in a dhoti. How the Titans of the Empire laughed at Gandhi then.
This process of ignoring - laughing - fighting and losing is what happens to the establishment in any paradigm shift. Who in 1935 could imagine the British Empire leaving India?
Who can imagine the Corporate Titans of our own time losing control of us?
Today time speeds by - what took decades now takes years. The Mad idea of working with nature and using her models, is very new. Maybe only 20 years old. In terms of a coherent way of eating and its relation to food maybe a decade. Blogging about this began in 2005!
In less than 6 years, millions are involved. The time of "Ignoring" has past.
The old system's immune system has been alerted. And the laughing and the attacks have begun.
"Paleo" is being talked about by the mainstream media as a joke - the Caveman Diet. Just another fad. Ignoring the point that this is not a diet but part of a larger context of health - that of aligning how we live to our evolutionary past.
Expect more "Jokes".
The "Attack" is all about Food Safety.
We are seeing concerted attacks on people who raise animals in a truly safe way - small egg flocks - people growing veggies in their front yard. They tell the mainstream that this food is not safe. Ignoring that the factory systems food is at the centre of our long term chronic health crisis.
Expect more attacks designed to raise the fear of the public and fear among the pioneers.
They will "burn" them as heretics. In modern terms they will humiliate us and take away our livliehood. And do it all in the context of keeping the rest of us safe from heresy.
The establishment are powerful not just because they have a few Titans at the top but because there are so many functionaries below them. People who make their living and have their power as a result of being in the system.
But the smart revolutionary does not attack this group. They depend utterly on the Titan. When he goes they go too. The News of the World staff get fired and cannot be rehired. The Mubarak inner circle and support melt away when their man falls.
But they cannot be ignored - they will be the ones who attack the new. Not the Titan himself.
You cannot win by attacking this system directly. They will crush you.
You win by allowing them to commit an outrage on you! It's very Zen!
The Titans destroy themselves by going too far in their attacks. At some point they outrage the sleeping people.
Look at what is going on in England now. The entire political class in the UK now has to step back from Murdoch. His henchmen/women have gone too far.
The people did not mind the Hugh Grants of the world or the Royals being hacked. But they cannot tolerate the families of war dead, of murdered children being the targets. And now that Gordon Brown has been seen as being defiled by the Titan, all can see that the only way ahead now to to sweep Murdoch away.
The people move when THEY feel the injustice and the betrayal.
So now to us. What will be the moment?
I see two tracks tnat interact. The power of social media and the increase in awareness that we are all being betrayed by the system.
The power of social media means that the secrets of the Titans can no longer be hidden. The big betrayals are amplified by social media. The power of social media means that dictators can no longer oppress their people without the world looking on. The more they assault their own people - such as in Libya and Syria - the more inevitable it is that they lose.
So what about us in the west. The scale of the deception and so betrayal builds every day.
The War in Iraq was based on a lie
We have also lost in Afghanistan trying to support the unsupportable
The press is being shown to be mainly in the pockets of its owners - it has done its best to hide the truth
Wall Street owns the recovery and the people are bereft - there is no growth in employment
The young in Europe and the old are shut out
The Euro zone and America's credit are on the knife edge but we were told that we have to pay back the bankers
Meanwhile the old contract is being destroyed
The pensions that boughtv our obediance when we worked for them are going
The schools and roads that we paid for are in ruins
The justice system is being gamed
Even our water system is for sale
We don't own our homes annymore
Our children did all we asked and there are no jobs
We are told that we are not safe and our liberties are removed
You can add to this list - the reasons for consent are melting.
All of this is coming out of the New Media and the stories get bigger and get more traction every day - the Titans are shown not to care about us. They are shown to be cynical manipluators.
And now we come to the big lie - that our health and old age will be looked after by a Ponzi scheme of the transfer payments.
This demographic and fiscal crisis will be the battle ground where the revolt will take place.
Rising oil and food prices and the debt crisis will all come together and the people will have nothing to lose by taking the risk of leaving the system.
The entire basis of the western deal with its people will unravel and the people will be betrayed just when they are the most vulnerable.
So what to do? What do you and I do? Not easy question to answer but just as there are patterns of history that show us how true paradigm revolts take place, there are patterns that can help us see our best choices and what will happen in a pattern sense as the revolt gets under way.
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