Economy 52,845 Posted September 12, 2020 Share Posted September 12, 2020 https://www.bnnbloomberg.ca/canada-s-household-debt-ratio-shrinks-on-trudeau-transfers-1.1492502 Canada's consumer debt has dropped to 158% of annual income after years is staying in the 175% to 179% range While 158% is still one of the highest in the world (in USA the all time high in 2007 before financial crisis was 134% by comparison) and a danger to financial stability, it is a sharp drop and the lowest it's been in years The main reason is the generous stimulus checks known as CERB and other Government bonuses (that often exceeded people's normal income) combined with consumers afraid to shop during uncertain Times However this has come at a massive financial cost equivalent to a deficit of close to 20% of GDP new estimates show. Essentially a lot of consumer debt has been transfered from consumers to the Government Link to post Share on other sites More sharing options...
StarstruckIllusion 53,564 Posted September 12, 2020 Share Posted September 12, 2020 Thank god our government was competent to do this and I’m lucky to be born here 😭 Imagine life without them... idk how Americans are doing rn Link to post Share on other sites More sharing options...
Economy 52,845 Posted September 12, 2020 Author Share Posted September 12, 2020 12 minutes ago, StarstruckIllusion said: Thank god our government was competent to do this and I’m lucky to be born here 😭 Imagine life without them... idk how Americans are doing rn Yeah... But this is why getting finances in order during good times is important so that during emergencies or downturns u can spend without restrictions Trudeau is doing the easy part. Spending a lot of money that the Government has the means to spend because the Federal Government had a very low debt. That doesn't take a lot of competence The hard part was Canada after 1996 finally getting its act together and getting finances in good shape after they deteriorated severely. For 18 years we ran Surpluses and payed debt... And after 2008 crisis after the first couple years although we never balanced the budget at least we got deficits very low around 1% of GDP But since Trudeau took over in 2015 he kept being more and more lax with finances and in my opinion he was not being prudent and he was sowing the seeds to start bringing Canada back to where it was in the 80s and 90s Again the previous Prime Minister's and finance ministers did the hard part to get Canada into good financial status over the last 2 decades. Trudeau simply was able to spend a lot because of the good finances he was GIVEN. I can't give Trudeau credit for that. Again, what he did was the easy part. Being more generous during a crisis than most other Nations when your Countries debt is 31% of GDP vs over 100% in most of the Developed World is not that complicated especially when most of the population is not against it and political pushback is minimal Link to post Share on other sites More sharing options...
lavenderblondee 3,695 Posted September 12, 2020 Share Posted September 12, 2020 Like you've said, good and bad. It's sort of transferred debt from one to the other. US said "Meh, 1200 is enough and then maybe in 6 months we'll give another.." which is still on the table. I have always been on the fence of how UBI could work, it would just be perpetual debt... but I really think we should of done something similar to Canada during corona. We NEVER would, and that's sad, but we should of done SOMETHING differently than just freeze evictions and one small check. Our economy is on the brink of disaster. Link to post Share on other sites More sharing options...
StarstruckIllusion 53,564 Posted September 12, 2020 Share Posted September 12, 2020 26 minutes ago, Economy said: Yeah... But this is why getting finances in order during good times is important so that during emergencies or downturns u can spend without restrictions Trudeau is doing the easy part. Spending a lot of money that the Government has the means to spend because the Federal Government had a very low debt. That doesn't take a lot of competence The hard part was Canada after 1996 finally getting its act together and getting finances in good shape after they deteriorated severely. For 18 years we ran Surpluses and payed debt... And after 2008 crisis after the first couple years although we never balanced the budget at least we got deficits very low around 1% of GDP But since Trudeau took over in 2015 he kept being more and more lax with finances and in my opinion he was not being prudent and he was sowing the seeds to start bringing Canada back to where it was in the 80s and 90s Again the previous Prime Minister's and finance ministers did the hard part to get Canada into good financial status over the last 2 decades. Trudeau simply was able to spend a lot because of the good finances he was GIVEN. I can't give Trudeau credit for that. Again, what he did was the easy part. Being more generous during a crisis than most other Nations when your Countries debt is 31% of GDP vs over 100% in most of the Developed World is not that complicated especially when most of the population is not against it and political pushback is minimal Interesting backstory. But people’s lives > the economy, so we definitely took the less evil path. My POV didn’t account for the government too, but I hope they can recover well. I’m just appreciative our government values people more than others. The US is not doing great right now with all the permanent job losses, debt, struggles, wild virus spreading, and big bank focusing. The stock market is a joke and wealth + benefits of growing companies doesn’t trickle down enough to care about it... especially now. Link to post Share on other sites More sharing options...
HeavyMetalLover 16 Posted September 12, 2020 Share Posted September 12, 2020 51 minutes ago, StarstruckIllusion said: Thank god our government was competent to do this and I’m lucky to be born here 😭 Imagine life without them... idk how Americans are doing rn Shitty. We’re doing really shitty. We got a $1200 stimulus check in April, which has averaged out to about $6.00 per day since then. We may not get any further financial help from the government. Not everyone qualifies for unemployment. It‘s absurd and mostly very sad. i don't remember ARTPOP Link to post Share on other sites More sharing options...
ThisGuyTony 34,869 Posted September 12, 2020 Share Posted September 12, 2020 Trump’s America could never. Link to post Share on other sites More sharing options...
Bt1 5,213 Posted September 12, 2020 Share Posted September 12, 2020 Yea, it looks good now. Let's see how it will be one year from now. Link to post Share on other sites More sharing options...
Economy 52,845 Posted September 12, 2020 Author Share Posted September 12, 2020 3 hours ago, StarstruckIllusion said: Interesting backstory. But people’s lives > the economy, so we definitely took the less evil path. My POV didn’t account for the government too, but I hope they can recover well. I’m just appreciative our government values people more than others. The US is not doing great right now with all the permanent job losses, debt, struggles, wild virus spreading, and big bank focusing. The stock market is a joke and wealth + benefits of growing companies doesn’t trickle down enough to care about it... especially now. For sure, I agree with ppls lives and stuff vs economt. I just meant the circumstances that allowed Trudeau to spend were to help people is thanks to past prime Ministers going back all the way to 1996 so they deserve even more credit in my opinion for being responsible during ok times so that in bad times we had this ammo available Cuz like I said, it's a time if emergency, there's less backlash about deficits than usual during severe downturns and even other parties didn't fight Trudeau too hard on measures. So under the circumstances what Trudeau did were not politically difficult measures Link to post Share on other sites More sharing options...
Economy 52,845 Posted September 12, 2020 Author Share Posted September 12, 2020 3 hours ago, lavenderblondee said: Like you've said, good and bad. It's sort of transferred debt from one to the other. US said "Meh, 1200 is enough and then maybe in 6 months we'll give another.." which is still on the table. I have always been on the fence of how UBI could work, it would just be perpetual debt... but I really think we should of done something similar to Canada during corona. We NEVER would, and that's sad, but we should of done SOMETHING differently than just freeze evictions and one small check. Our economy is on the brink of disaster. It definitely helped ppl a lot but we didn't do half as much for businesses which some experts warn could come to bite us later because many businesses are going bankrupt cuz of the shutdowns These checks can't be sustained forever (they are already starting to be reduced) and if people don't have jobs to go back to people will struggle In my opinion the consumers and the businesses are both critical to economy and work in sync. Saving one but not the other won't prevent serious damage and disruption They are expecting 40% to 60% of restaurants for example to go bankrupt especially among independent small owners Link to post Share on other sites More sharing options...
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