This Old Economist: “Correction - there’s more than one problem”

So, what else is new?

After all, many consumers are wired to spend much more money than they earn, as if their life depends on it. (It likely doesn’t).

Correction #1: “Some” Canadian consumers...

Correction #2: There is more than the problem of rising unemployment.

- a weakening or self-correcting economy

- an increase in interest rates

- continued damage to the environment

(For starters).

Recommendations

- reduce spending

- pay down debt

- save money for tough times

(For starters).

[Photos by G.Harrison]

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Thing$ Going $$South Pt 1: That’s right, not everything goes north

We live in an age of increasing expenses and concerns and if I made a list of “Thing$ Going North” it would be quite long.

Wait. I’ve already done that.

However, it’s come to my attention that besides escalating debt (Personal, provincial, federal, global) and the price of famous comic books (Batman strikes again - whammo!) there are a few things that are going south as well.

For example, I recently wrote about stats from 1971 - 2006 that show the home ownership gap between low income and high income earners is widening, not only because more high income earners are buying homes but because fewer low income earners are.


["Does the Canadian dream begin or end here?"]

The housing market for low income earners is going south.

E.g., for low income earners, age 20 - 34, 31% purchased homes in 1971 but only 19% did so in 2006.

Low income earners, age 35 - 54, 62% purchased homes in 1971 but only 46% did so in 2006.

In all age groups, fewer low income earners bought homes in 2006 than 1971.

Conversely, all age groups, more high income earners bought homes in 2006.

I have believed for some time the money “is out there” to cure many societal ills, but can see it is poorly distributed.

If the gap between the “haves and have nots” continues to widen, the future of many Canadians looks grim.

What else is going south in this lovely country of ours?

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Stats are from Stats Can, home of the informative long form census.

Is there a future for smaller, more affordable homes in Canada?

.