BROKEN ECONOMY: Majority Of Canadians Couldn’t Afford To Lose $200

When the economy is discussed, we hear often about the unemployment rate and change in GDP. Often, that’s where the conversation ends. Those top-line figures are used by the establishment to give a sense of control and stability to perceptions of our economy.

But those numbers miss what is really happening on the ground – exactly as the establishment wants it. The last thing they want is an in-depth look into the economy. Because when we look deeper, the truth is clear: Canada’s economy is broken.

This was confirmed by an Ipsos survey reported by Global News.

According to the survey results, more than 50% of Canadians would be unable to pay all their monthly bills or debt obligations if their income was reduced by $200.

As Grant Bazian – President of the MNP personal insolvency division – told Global, “With such a small amount of wiggle room, any kind of unanticipated hardship, such as a job loss or even a car repair, could send an already struggling family into financial despair.”

Disturbingly, those Canadians who have just a $200 cushion are often among the lucky ones.

The survey showed that another 10% of Canadians have a cushion of just $100 per month, while 31% say they don’t make enough to meet their monthly expenses and obligations.

Those numbers paint a clear picture: Canada’s economy is broken

As I reported in early April, Canada’s wage gains have slowed to their lowest in 20 years. Wages have been weak for a long time – especially when the inflation rate is taken into account. Now, we are seeing the consequences of an economy that only works for those with connections: Canadians are becoming poorer.

When we look at the survey numbers above, the overall story is deeply concerning. Over 80% of Canadians have no more than a $200 financial cushion, and many others have no cushion at all. This starts to make the idea of a “middle-class” almost irrelevant. Instead, we have the vast majority of Canadians who are facing precarious finances, while a small elite continues to amass wealth and financial security.

There are certainly Canadians who have become wealthy on their own merits. However, instead of creating an environment where those Canadian business owners can create more jobs, more wealth, and more opportunity, the government instead stifles them – taking the money they earned in the private sector and redirecting more and more of it into the bloated and inefficient bureaucracy.

Notice how the government gets bigger every year, and yet we aren’t getting better off. The logical end result of more government spending, more debt, higher taxes, and more regulations is a poorer population. The more economic growth is stifled by the government, the less wealth each of us will have. Then, the government takes more of that already dwindling wealth with higher and higher taxes. That leads to more financial insecurity. And that’s how we end up with a majority of Canadians one small change away from facing financial disaster.

Smaller government, bigger wallet

The solutions to the financial insecurity facing Canadians are actually very simple:

  • Eliminate the carbon tax
  • Cut income taxes
  • Get spending under control
  • Cut regulations to unleash growth

The economy is too fast-paced for big centralized government to work. Giving more power to individuals, families, and local communities is the only way we can fix our broken economy and end the corrupt system that has been holding us back for far too long.

The elites won’t give in easily. The system may not work for us, but it works for them. They want a large pool of desperate workers who they can pay next-to-nothing. They want people too focused on just getting by day-to-day – which makes it easier for those in power to distract from their true agenda.

That’s why we must push back against them. Canadians deserve financial security and prosperity, and it can be ours if we retake control of our government.

Spencer Fernando