Consumer confidence hits a record low
By Deirdre McMurdy, Sympatico / MSN Finance
No surprise that the latest measures show consumer confidence in Canada is at the lowest ebb since the recession of 1981-82. According to the Conference Board of Canada, we feel that we are now worse off than we were six months ago. And we expect to be even worse off six months from now.
People cite uncertainty about their employment prospects, which feeds directly into their ability to manage their current debt load and their willingness to spend a nickel that's not necessary.
But arguably, the political games, the search for scapegoats and the general absence of leadership is exacerbating the lack of confidence.
The fragile political balance, means that compromise and deal-making trump bold action. On the corporate front, multinational ownership and offshore head offices have also heightened the sense of a lack of control. And on top of that, the witch hunting, finger pointing and blaming has begun.
Economists say that lack of confidence will translate into the need for an even bigger government stimulus initiative to kick start the economy. Effective leadership is never cheap, but for once we may actually be able to put a pricetag on it.
Posted by: Peter Suderman | Jan 1, 2022 5:18:32 PM
Maybe people are just starting to realize that happiness is not dependent on how much crap you buy!!
Posted by: Axel | Jan 5, 2022 3:27:43 PM
Has anyone ever noticed that the economy fell apart about a month after oil hit $148 a barrel? Who was the magic God that said "today oil is going to be worth that much..." and then gouge the consumer at the gaspumps accordingly? When gas here hit $1.48 a litre, the consumer did what I did- we ALL clinched our wallets SHUT and dedicated our money to a tank of gas, groceries in the fridge, and the mortgage payment. ALL frivolous spending CEASED! And the true hub of our economy is driven by the consumers' frivolous spending- trips to the restaurant, trips to the pubs, night out at the movies, maybe a large luxurious car or truck.... take a look at what's still happening: the consumer drove our nations to their knees by cliching their wallets shut. As for me, along with many other consumers, we're gun-shy now. When we do have a dime to spare, we save it. For when the price of fuel (and crude oil) goes thru the roof again.
Posted by: Wii-Mii | Jan 16, 2022 2:14:28 PM
The thought of the government squirming in it's seat makes me about as happy as the bag of goodies they are about to unleash. I'm not convinced however, this is the best thing for the country right now. As an overtaxed tax payer, I'm eagerly anticpating what they have to offer in order to avoid being thumped out of office.
My common sense however, tells me wait a second, this all doesn't add up. While I believe we are not amuned to the economic whoes the rest of the world is feeling, our financial sector is in a very good position right now thanks to the conservative (philosophy, not the party) measures taken to keep them reigned in and from following their southerly brothers and sisters. Housing prices are lower yes, but we are not nearly in the dire straights they see now in the US where almost everyone knows someone in foreclosure.
While the auto sector has been decimated in the US with some markets down in the 40% range, here in Canada, we are seeing sales rise in markets like Nova Scotia where car slaes were up about 6% in Novemeber over last year.
So I have to ask, is this rhetoric the result of watching US television and believing the sky is falling here as well? Or is it niavity and we simply need to wait a few months before everyone is out of work in Canada and homeless? I don't think so.
So while i will take my big tax break and politely and quietly say thank you, I have this deja vu feeling - like the feeling I have when I take money from my kids' piggy bank to buy a coffee.
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