Constraining Canadian Federal Budget during Post COVID Downturn

[lenaitch]

If anyone wants to tilt at people earning "windfalls", go after commissioned realtors. There's not much reason for their incomes to ramp up with home prices.

I agree, and while no fan of the industry, we recently sold and bought and our agent mentioned who and what he has to share his commission with (agency, photographer, videographer, advertising, etc.) including a per-listing insurance charge, and it was all quite significant. I was never under the illusion that they pocketed it all but did not appreciate how many fingers were in the pot. The real winner is the buyer's agent who basically only has to commit time and fuel dragging his clients around.

 

[SeaKingTacco]

Debt level compariosn:

https://twitter.com/x/status/1741249237692604911

I think this chart might only show federal debt. If you add provincial debt, Canada begins to look much, much worse.

 

[brihard]

I think this chart might only show federal debt. If you add provincial debt, Canada begins to look much, much worse.

Does that go both ways? US state (and municipal) level debt can be very considerable. Their municipalities can hold debt in a way that ours largely cannot.

 

[SeaKingTacco]

Does that go both ways? US state (and municipal) level debt can be very considerable. Their municipalities can hold debt in a way that ours largely cannot.

That is the thing: I cannot tell what his numbers are based on. I assume federal debt only.

Also, the US can get away with carrying debt that no other country on the planet can, being the defacto world currency (for now at least). Canada cannot play in that league.

 

[Quirky]

Debt is only a problem if you intend on paying it back...

 

[dapaterson]

OECD net debt, all three levels of government. Canada hovers around 20%; the US around 118%.

General government financial wealth

The net financial worth of the general government sector is the total value of its financial assets minus the total value of its outstanding liabilities.

data.oecd.org

See also

https://twitter.com/x/status/1741256588252557589

 

[Brad Sallows]

As dependent as Canada is on trade with the US, it's no consolation at all to see that their fiscal situation is worse than ours. If they crash, we'll crash.

 

[brihard]

Ten year government bond yield rates across the western world suggest that big finance isn’t particularly concerned about current Canadian debt levels. Long term bond yields is the biggest place you would see such fears reflected on a big picture scale.

 

[GR66]

Ten year government bond yield rates across the western world suggest that big finance isn’t particularly concerned about current Canadian debt levels. Long term bond yields is the biggest place you would see such fears reflected on a big picture scale.

Thank goodness big finance has never got it wrong...

 

[Good2Golf]

OECD net debt, all three levels of government. Canada hovers around 20%; the US around 118%.

General government financial wealth

The net financial worth of the general government sector is the total value of its financial assets minus the total value of its outstanding liabilities.

data.oecd.org

See also

https://twitter.com/x/status/1741256588252557589

Not finding your 20 v 118 figure at OECD. US being ~6x worse than Canada doesn’t seem accurate.

From the OECD website you quote, Total Govt Debt %GDP for OECD Avg (89%), Can (113%) and USA (144%).

Interactive charts by the OECD

General government debt, Total, % of GDP, 2022 or latest available

data.oecd.org

 

[Rifleman62]

Having gone through paying Cdn Capital Gains Tax on the sale of a US winter residence, there are other consequences. Such as paying back OAS overpayments from that tax year and the significant reduction of OAS payments for both of us for 12 months. It is a lot of money not counting the actual tax bite.