household

Thursday January 18, 2018

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday January 18, 2018

Bank of Canada raises key interest rate to 1.25% despite NAFTA worries

The Bank of Canada raised its key lending rate by a quarter percentage point to 1.25 per cent Wednesday, the third time it has moved its benchmark rate from once-record lows last summer.

The bank’s rate has an impact on rates that Canadians get from retail banks for things like mortgages, savings accounts and GICs. The move means borrowers can expect to pay more, but savers can expect to earn more, too.

After the central bank moved in the morning, the Royal Bank of Canada and Toronto-Dominion Bank each hiked their prime lending rates by the same amount, 25 points, in the afternoon. The new rates of 3.45 per cent will be in effect as of Thursday, Jan. 18. Canada’s other big banks are expected to follow suit.

The Bank of Canada was widely expected to raise its key rate after economic data in recent months showed gross domestic product growing, the job market healthy and the cost of living ticking higher.

The bank’s benchmark rate is now at its highest level since 2009.

In the MPR, the bank nudged up its expectations for how the economy will perform this year and next. The bank now expects Canada’s economy to expand by 2.2 per cent this year and 1.6 per cent in 2019. Previously the bank was anticipating 2.1 and 1.5 per cent growth. 

But while broadly positive about the economy’s prospects, the bank cited “uncertainty about the future of NAFTA” as a reason for concern moving forward. (Source: CBC) 

 

Thursday July 16, 2015

Thursday July 16, 2015Editorial cartoon by Graeme MacKay, The Hamilton Spectator – Thursday July 16, 2015

Bank of Canada cuts interest rate, lowers economic outlook

The Bank of Canada reduced its benchmark interest rate for a second time this year as the damage from lower oil prices shrank the economy in the first half and leaves a full recovery almost two years away.

Gross domestic product probably “contracted modestly” in the first half of 2015, policy makers said, without calling it a recession, which is typically defined as two straight quarters of negative growth. Output will recover this quarter as non-energy exports rebound from a decline the bank called “puzzling.”

The central bank lowered the benchmark rate on overnight loans between commercial banks to 0.5 per cent from 0.75 per cent, where it had been since a cut in January. The first-half contraction led to a “marked increase in excess capacity,” the bank
said.

Policy makers at the bank said output probably shrank at a 0.5 per cent annualized pace in the second quarter, compared with an April prediction of a 1.8 per cent expansion. The economy registered a 0.6 per cent contraction between January and March.

Historically low interest rates have already pushed consumer debt-loads and home prices to record highs, while failing to trigger lasting investment and export gains.

For the housing market, where the cheapest mortgages in decades have led to record consumer debt burdens, the bank reiterated its view there’s no bubble. “The Bank continues to anticipate a constructive evolution in the housing market,” its economic forecast paper said, with a moderation in housing in 2015, followed by stabilization in 2016 and 2017.  (Source: Hamilton Spectator)

Saturday August 31, 2013 (Labour Day Weekend)

Graeme MacKay Illustration for Saturday, August 31, 2013 in The Hamilton Spectator

Is Labour Day still every day for women at home?

“Ask of me anything but doing the laundry.” – Napoleon

True, history suggests the diminutive dictator said to ask of him anything but time, but surely that was code for housework.

Times have changed from the days when men left all the chores to women while they brought home the bacon and conquered nations.

Isn’t it true that the division of labour in the home is no longer so imbalanced?

As a sociologist might put it, the answer is yes and no.

A Statistics Canada study says that between 1998 and 2010 men increased the time they spent on home chores by an hour in a given day, while women’s housework time remained constant.

And yet it found that Canadian women still do at least an hour more chores per day then men.

Moreover, women working full time spend nearly twice as much time caring for their children.

So is the egalitarian glass half-full or half-empty? Or should we measure using a smaller glass?

It bears noting that housework for both genders has decreased overall compared to the 1960s, in part due to such things as affordable home appliances, easier to prepare meals and paid home cleaners.

But chores continue to be mostly handled by women. Friction over the imbalance can doom a couple.

“The division of labour in and of itself can torpedo a marriage,” said Gary Direnfield, a Hamilton social worker and author of Marriage Rescue.

“And it’s not necessarily who is doing the laundry but how we feel about who is doing it. We take that as a statement on the relationship, attach meaning to these chores and fight over what we believe it means.”

Women’s lives have been transformed in the past 50 years, McMaster University sociologist Melanie Heath wrote in an email from Paris where she is conducting research. (Continued… Source: The Hamilton Spectator)

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)