
The Harper government has announced a new funding arrangement for Medicare, which after 2016 will be tied to economic growth in the nominal GDP. According to one estimate, this will translate into
$21 billion in cuts to health-care funding over 10 years. By unilaterally imposing health-care funding cuts on the provinces, the Harper government is putting its own brand on a familiar prescription for privatization: scapegoat Medicare, ignore private health costs, pretend you don't have any money, and then cut public health care to encourage privatization.
1. Scapegoat Medicare
Immigration Minister Jason Kenney, fresh off his
attack on Muslim women, was the first Tory to open the campaign against Medicare -- scapegoating it for cuts to social services. Suddenly a public education advocate, he claimed that public health-care costs are soaring and devouring provincial budgets.
Kenney stated that, "For some of the provinces, if they continue in that trajectory, there will be nothing left for education, for universities, for anything else."
This is a common myth, repeated by the
corporate media, that manipulates statistics created by decades of Tory and Liberal cuts at both federal and provincial levels. The relative rise in provincial health-care budgets is a statistical effect from greater cutbacks elsewhere. According to the 2011
report, "Neat, plausible and wrong: the myth of health care unsustainability" by Canadian Doctors for Medicare (CDM):
"The change in share of provincial budgets is not primarily due to increased health care spending. It is the result of decreases in other provincial spending to accommodate political decisions to cut taxes … Deep cuts in federal transfers to the provinces in the mid-1990s were compounded by provincial tax cutting policies in the latter part of the decade, causing significant reductions in total provincial budgets. Provincial revenues have fallen almost $30 billion since 1997, causing decreases in other government program spending through cuts to education, social services, and municipalities … It is tax cuts that have 'crowded out' these priorities, not Medicare."