Liberal (Minority/Majority) Government 2025 - ???

[Czech_pivo]

In Canada and the US, most people and families earn below average. When talking about average income or taxes, you are describing a group that is above typical. If you want to make honest comparisons between countries and understand what is going on within a country, you need to look at median incomes and median taxes paid.

And then there is this -

Putting America’s staggering federal debt load in a perspective Canadians can understand — The Globe and Mail

U.S. now spends enough on interest costs in one year to pay off Canada’s entire federal debt – and then some

stocks.apple.com

Currently 9 cents of every tax dollar received by our Federal Government goes to pay the interest on our federal debt. As a comparison, it’s 21 cents of every tax dollar received in the US to just cover the interest payments on the federal debt. In 10yrs it will be 26 cents of every dollar received.

Sooner or later it will break them.

 

[Jarnhamar]

Consumer?

Pretty rough out there. Up 11.5% from last year.

 

[Altair]

Pretty rough out there. Up 11.5% from last year.

A couple of things.

First, 5 year fixed rate mortgages. someone getting it at rock bottom interest rates in 2020-2021 will be coming up for renewal at much higher rates now.

Second, flat housing prices. People cannot use equity to bail out their new higher rates

Third, consumer proposals allows people to bail themselves out while staying in their now much more expensive mortgages. (unlike in the USA where you lose your house in a lot of cases)

So, yeah, it's rough, but this was always going to be a slow moving tidal wave the second people bought in at rock bottom rates with the assumption that house prices only go up.

 

[MilEME09]

We're lagging like crazy....

Beyond GDP: Americans’ net wealth has doubled over last decade, while Canadians’ lag far behind​

Canada’s growth trajectory relative to the U.S. is concerning, particularly when it comes to the measures most closely tied to income and work.

Specifically, over the past decade, Americans have seen much stronger financial gains compared to here at home. Average after-tax incomes stateside have risen by about 22 percent, and median net wealth has more than doubled.

In Canada, the progress has been far slower—about 8 percent and 57 percent, respectively. So, while some may criticize per capita GDP as an incomplete, abstract measure of income and prosperity, these OECD findings suggest that its decline is showing up in people’s paycheques, savings, and financial security.



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Beyond GDP: Americans’ net wealth has doubled over last decade, while Canadians’ lag far behind

The wealth gap between Americans and Canadians has exploded over the past decade. The numbers will surprise you.

thehub.ca

Funny thing about averages, when you got people like Elon Musk pulling that average stupid high, you dont see the proper picture of the average American.

 

[Altair]

Funny thing about averages, when you got people like Elon Musk pulling that average stupid high, you dont see the proper picture of the average American.

Yeah, but its a good tool to use to try to bash Canada so why not post it i guess...

 

[Jarnhamar]

A couple of things.

First, 5 year fixed rate mortgages. someone getting it at rock bottom interest rates in 2020-2021 will be coming up for renewal at much higher rates now.

Second, flat housing prices. People cannot use equity to bail out their new higher rates

Third, consumer proposals allows people to bail themselves out while staying in their now much more expensive mortgages. (unlike in the USA where you lose your house in a lot of cases)

So, yeah, it's rough, but this was always going to be a slow moving tidal wave the second people bought in at rock bottom rates with the assumption that house prices only go up.

Thats why the purchasing economy is worse than the headline numbers we're suggests.

A lot of the pressure is being absorbed through tbose delayed mortgage renewals, consumer proposals, depleted savings, and people simply cutting back. It's not necessarily showing up as immediate defaults or falling GDP.

The system preventing a wave of foreclosures doesn't mean households are healthy. Deterioration is being spread out over time, that might make the economy look healthier on paper.

 

[Altair]

Thats why the purchasing economy is worse than the headline numbers we're suggests.

A lot of the pressure is being absorbed through tbose delayed mortgage renewals, consumer proposals, depleted savings, and people simply cutting back. It's not necessarily showing up as immediate defaults or falling GDP.

The system preventing a wave of foreclosures doesn't mean households are healthy. Deterioration is being spread out over time, that might make the economy look healthier on paper.

I mean, the alternatives were keep pushing higher and higher immigration to juice the housing market and then these folks would not be facing consumer proposals, or flatten immigration and people who bought in 2020 and 2021 would be sacrificed for the greater good.

The truth is, the damage is largely isolated to those 2 years. I have no doubt it will trend back down once those bankruptcies work their way through the system.

Not great news, but not a widespread structural failure either.

I bought in 2023, and my rates have only been going down.