Atlantic Canada faces 'perfect storm' of economic crises in 10 years

ANew Brunswick economistis warning thatAtlantic Canadians willbecome second-class citizens becauseofitsaging population.

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RichardSaillant,director of the Donald J.SavoieInstitute based at the University ofMoncton, ispredicting dire economic consequences for the eastern provinceswithin 10 yearsdue to the region's rapidly changing demographics,with drastic implications for government services.

"Health care, free, universal as we know it will no longer exist," saidSaillant, becausethe health care spending as a percentage of GDP will be twice as high as it is right now."

"People are already saying that it's straining public finances, it's 40 per cent of the provincial budgets at this point. Imagine when you double that amount of money as older individuals cost much more to the system,"Saillantsaid.

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There's been much ink spilled about Alberta's economic woes of late. But in Atlantic Canada, the economic situation is grim with a forecast of grimmer. Today The Current checks in on the forces at play and how to right the ship.

One in fiveAtlantic Canadiansis asenior citizen, he said, but in 20 years, that proportion will be onein three, which is why he iscalling for a new way to transfer federal funding for health care.

"Equalization only takes into account revenues, not needs," he said.

"Our needs will be greater."

In the past Saillant has publicly recommended tough medicine for New Brunswick, including closing some schools to reduce the teacher-to-student ratio,and taking advantage of every economic opportunity, possibly even shale gas development.