Debt up, income flat in Canada, reports say
It seems we link to this report every week, but the Bank of Canada’s proclamation the recession officially ended three years ago is topical once again.
According to the bank, the downturn was to be declared dead in July of 2009, and we all hoped a shift was to follow: we’d get our jobs back, save our homes and cars, spend more and the economy would heal itself.
But then, for every positive story to come out of post-recession headlines, it sure does appear there have been two to bring us back down.
Like this pair. Three years after the economy was said to have righted itself, Canadian household debt has hit a record high, while median household income has stopped growing altogether.
The two new reports come courtesy of Statistics Canada, which has the ability to both lift and slam a nation at its whim.
*Bing: How to calculate your net worth
As of the end of 2012’s first quarter, the ratio of debt to personal disposable income in Canada rose to 152 per cent, up from 150.6 per cent at the end of 2011. That’s a new national record.
Bad enough, but debt and income aren’t rising in uniform.
By another Stats Canada report, median after-tax income for families of two or more clocked in at $65,500 in 2010, largely unchanged from a year earlier.
Median income, as your grade three math memory likely serves, might be a peculiar measure of national earnings, but many economists feel it’s the best gauge.
Since median is literally the middle of the income pack, it’s generally thought to be a more accurate indication of a country’s earnings, since it’s not an average figure and not prone to outlier income levels, either high or low on the national scale.
Has your income stayed flat over the previous few years, a time when many Canadian companies have had to impose wage freezes even considering inflation?
By Jason Buckland, MSN Money
Posted by: Henry | Jun 19, 2021 12:34:02 PM
Not to worry, you rack as much debt as possible, and if you can't ,or don't want to pay your debt ,you can always claim personal bankruptcy. My former boss did, and he even got to keep aal his rrsp,s home ,and commercial building. How the H does that happen?
Posted by: Mr. Negative | Jun 19, 2021 1:50:23 PM
The media keeps making a huge deal about personal debt. I guess we can't have our government in a shit load of debt, and the people who pay taxes? I guess we will have to borrow from the corporations if we need a bail out!
Posted by: SP | Jun 19, 2021 8:44:08 PM
Yup my income hasn't increased anywhere near the rate of increase in Gasoline or Hydro prices.
That said...
People SAVE more and pay off debt as they age and get ready for retirement. Canada's population is aging like many other western democracies.
"The ratio of debt to personal disposable income in Canada rose to 152 per cent, up from 150.6 per cent at the end of 2011."
....
What could possibly go wrong as huge numbers of pensioners aim to collect pension payments from heavily indebted younger people?
Some people think that the US housing bubble and subsequent crash was a big deal. Just wait for the pension systems to crash.
Posted by: Miss Vivian | Jun 21, 2021 12:12:25 PM
Watch the film documentary called "Thrive" Just google it. We are being manipulated by the stock market and the goverments. I tried to get my money I invested out of the bank when the stock market was high but they maniplulated me in to keeping it in and as I had borrowed some money to invest in my RRSP and now the investment is down and paying the loan off with higher interest. I think the whole think is nothing but a legal ponzi scheme. Also lets make it more difficuilt for people to buy their own home and dictate how much disposible income they are aloud to have. You, know you better keep going to Walmart and buy all the junk so the poor can keep the economy going for the rich. Sorry, but let me choose if I want to by steak or hamburger, just a figure of speech. More and more controls are being put on people and they do not even know it. I think it is important for people to have a home to go to after work and at least you are getting something of your own. I looked at what people have to pay for rent here in Calgary and if was terrible what you get for 1500.00 per month and of course no pets alond. Well pets need homes too. The greed in this world is terrible. Also while I am on my rant, as long as those politicians get their big pensions and then tell everyone else they are not aloud a pension. I can see why people put their money under their bed.