Debt levels continue rising faster than income.
Canada’s household debt levels – already among the worst in the world – have reached yet another record high.
According to the Canada Mortgage and Housing Corporation, Canadian’s debt to income ratio has reached 178.5%.
Realize, the biggest problem here is that debt is growing faster than income, something the Trudeau government never seems to mention when they try and desperately claim the economy is ‘growing.’
For 2018, disposable income rose 2.5%, while debt payments rose 4.5%.
Debt can be useful and sustainable if the debt increase is smaller than the income increase. If someone takes on debt that enables them to get a car, which then enables them to get a higher paying job that more than cover the cost of debt payments, then the use of debt can be seen as wise.
But that’s not what we’re seeing in Canada.
Instead, with the cost of living rising – and new government taxes taking more and more of our money – people are going further and further into debt just in order to stay in the same place financially, which means payments get tougher and tougher to afford.
Additionally, rising numbers of Canadians say they are facing the risk of bankruptcy.
All of this adds up to an economy that is dangerously fragile, unable to generate real productive wealth, and is one bad event away from serious disaster.
It’s yet more evidence that Justin Trudeau’s economic agenda has been a total failure.
Photo – Twitter