Canadian Debt Rises, Making Us Rich?

 

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Clickbait Headline, ignore.

Newest stats from Statistics Canada show that in the midst of the federal government great Covid money giveaway, Canadians were saving a bundle of money, but as the great giveaway started to ween, debt has now started to climb:

In the second quarter however, with pandemic lockdowns, people were staying at home and the government was providing vast amounts of emergency funding and banks were deferring mortgage and other loan payments, all of which seems to have brought down the debt level. Household savings were also reported to be high with many people reducing discretionary spending on such things as restaurants and travel which were largely restricted due to COVID.

That debt level has gone back up in the third quarter possibly due to the winding down of emergency COVID funding programmes and deferrals coming to an end, even though employment figures began to creep back up to within 3.7 per cent of pre-pandemic levels.

But not for everybody:

“Generally speaking, wealthier individuals experienced larger increases in savings as they were more likely to retain their jobs while also cutting back on discretionary spending such as travel and restaurants which remain largely unavailable”.

There are a few things to unpack here as this isn't as easy as saying the rich got richer and the poor got poorer, but that's not exactly incorrect, either.

The poorer % of Canadian's are now in a worse spot than they have even been in. Those who held down minimum or a little over minimum wage jobs, either lost their jobs, got their hours reduced, or make the same amount of money, while inflation kicked the living hell out of them.

For many, cerb money was more that what they made in their job, but cerb wasn't taxed, so in a few months when tax time comes, these folks will not be getting rebates, they might actually have to pay tax. Good luck with that.

Plus, lower wage earners are notorious spenders. They smoke more, drink more, drug more, party more, more everything more. They eat out more, they eat more shit food and junk food. It doesn't feel great to read that, but it's true. Age has a lot to do with it, but as the kewl kidz say, "it is what it is."

Little debt monkeys.

Meanwhile, those who are established are doing pretty well. Working from home means not having to spend money on gas to get to work, or taking a train or bus, not as many take-out meals, expenses are cut way down and obviously savings are way up.

Truedough has given away upwards of 274 billion since the whuhan hit in March, and savings have only gone up a few tens of billions. Put those numbers into perspective. 274 billion. With a B.

When Truedough talks about the great reset, you should pay attention to what he says. When he says reset, he means monetary reset as well, as in a digital reset. As in no paper money. As in....you get the drift.