The liberal has a tendency of spending money to fix Canadian problems. Today, either Canada has the most amount of problem in the world or Trudeau loves to spend the budget for reasons only known to his party. The Financial Post has put together an amazing article of the countries with the highest amount of consumer debt. Not surprising at the least. Before we dive into the economy, taxes, and government let’s discuss the housing market / Average hourly wage within the past 40 years in Canada.
Consumer debt tops 100 per cent of gross domestic product in Canada, with South Korea and Britain both above 80 per cent. On corporate borrowing, the OECD warned about a shift in risk from banks to the bond market and a “substantial” decrease in credit quality. Canada’s consumer debt has also started to rise as households took advantage of low interest rates over the past seven years. Canadians are the most indebted in the world, OECD says, as it warns on rising debt risk
thumbnail courtesy of business.financialpost.com
The mid-1970s (in 2016 dollars, Canada)
Average Hourly Earning – $24.50/hr
Share of employees with university Degree – 10%
Average cost of house – $210,000
2016 (2016 dollars, Canada)
Average Hourly Earning – $27.70/hr
Share of employees with university Degree – 30%
Average cost of house – $490,000
For a person in Toronto or Vancouver, the average cost is much higher than $490,000 sadly. Expect to spend 25% to 40% more if you want to be within the city. This makes everyone first time buyer a “Debt Salve”. This is why there are so many bad credit companies in Ontario. Recently, I had to get a debt consolidation loan to help me with personal debt of mine. There is hope at the end of the tunnel. Just today the liberal party raised $8,00,000 loan to offshore trust in the Cayman Islands.
Prime Minister Justin Trudeau quickly came to the defence of Bronfman, a longtime family friend who led the fundraising efforts for Trudeau’s leadership bid and the financially and politically successful 2015 federal election campaign. It was part of a larger network of companies that helped expand the Bronfman empire into Israel in the 1990s. Companies were set up in Nevada, Delaware and New York state and entered into financial agreements with the Cayman Islands trust. Chief Liberal Party fundraiser tied to $8M loan to offshore trust in Cayman Islands
thumbnail courtesy of cbc.ca
Some may be angry that Trudeau is proving the Cayman Islands with money that Canada clearly doesn’t have. From an ethical standpoint, this is the right to do. Providing assistant, when needed, without asking is the most Canadian it can get. This is one of the thousands of reasons why Canada is considered the “Peace Keeping” country of the world. However, from a financial standpoint, this couldn’t have been the worst time. The Financial Post exposed the Canadian Government concerning having the highest Consumer debt in the world. Regardless of what we think was the best decision, it has already been chosen. All we Canadians can do is wait for the next Federal election.