Canada’s household debt levels – the highest in the world – are an increasing cause for concern heading into the new year.
A survey conducted by CIBC shows Canadians putting paying down debt as the top financial priority.
As noted by BNN, “One-quarter of the 1,524 Canadians surveyed online between Dec. 11 and Dec. 12 said debt payment was their main focus heading into 2018, while some Canadians (13 per cent) will prioritize growing wealth, and seven per cent plan to focus on saving for retirement.”
While offering advice relating to the survey results, Jennifer Hubbard of CIBC pointed out a serious issue with the economy:
“With inflation outpacing average earnings and the risk of outliving our assets, it’s essential to set out your short- and long-term financial goals in a comprehensive financial plan that strikes the right balance between paying down debt and growing savings.”
Weak earnings, and rising inflation – made worse by higher taxes and policies that hurt Canadian workers – mean the debt problem has been getting more and more serious:
“Just over one-quarter (26 per cent) of respondents said they took on new debt this past year in order to manage day-to-day expenses or deal with a financial emergency.”
This is putting Canada in an increasingly perilous situation, and points to the fact that even our so-called economic growth is based upon an unstable foundation.
As the Trudeau government takes actions that put more money and power in the hands of government, they deprive Canadians of the ability to become more financially independent. After all, the elites don’t want more people who are free from government, they want more people dependent on government.
Reversing Canada’s dangerous debt situation wouldn’t be difficult, if the government was reduced in size, the leverage of Canadian workers was increased, and large tax cuts were passed putting more money in the pockets of individuals and families.
This would grow the economy in a more sustainable way, increasing demand for both products and labour.
Yet, the Trudeau government continues going in the opposite direction, putting our nation on a dangerous course as 2018 nears.