debt

Thursday May 13, 2010

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday May 13, 2010

Canadians’ household debt reaches record levels

Canadians’ debt-to-income ratio now ranks first among 20-advanced countries in the OECD and a new study suggests the recession did little to dampen the country’s enthusiasm for taking on household debt.

The level of household income soared to an average of more than $40,000, according to a report from the Certified General Accountants Association of Canada.

“We were a little bit surprised that throughout the recession we continued to take on debt,” Rock Lefebvre, a vice president for CGA Canada, told CTV News Channel.

Household debt reached an all-time high of $1.41 trillion, according to the report. If spread out evenly among Canadians, every man, woman and child would owe $41,740 — more than two-and-a-half times greater than 20 years ago.

Lefebvre said Canadians used to save up to 20 per cent of their disposable income as recently as the 1980s but that number is now less than one per cent.

“Consumerism has taken hold (in Canada) and people who have access to credit, are taking advantage of it,” he said.

Lefebvre said some debt is necessary to stimulate the economy and fill the government’s coffers.

However, he noted bankruptcies were up significantly during 2009 and governments’ debts are on the rise.

“The question becomes at what point has society taken on too much debt?” Lefebvre asked. (CTV) 

 

Tuesday October 28, 2003

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Tuesday October 28, 2003

Bring on the Broken Promises

Now that power has been officially handed over to the new government, the Liberal backtrack strategy is moving into higher gear.

Mind you, McGuinty himself doesn’t talk about such things any more. At his swearing-in on Thursday, the new premier reinforced his image as an endearing square by talking about Cub Scouts and making lunch for the kids.

But in the background, the usual array of unnamed highly-placed Liberal sources have been busy explaining why McGuinty chose Greg Sorbara as finance minister over Gerry Phillips, the party’s veteran treasury critic and obvious choice for the job.

Phillips, the usual sources say, is too nice. Sorbara, on the other hand, is said to be mean enough to make the kind of tough spending cuts McGuinty wants.

This is an interesting rationale. Those who know Sorbara don’t find him that mean; in fact, he’s quite charming and rather likeable. (Source: Hamilton Spectator)