This week, Saskatchewan's debt will reach it's lowest level since 1991, with the accumulated debt being reduced to $6.9 billion. Minister Atkinson announced $400 million will be used towards the debt after the province experiences another quarterly surplus.
But while the Saskatchewan Government pays debt, consumers are spending more and taking on more debt. According to Stats Can consumer spending on retail sales grew by 6.4% in 2006 over 2005 figures to a whopping retail spending average of $11,974 per person in Canada. It must be said too though, that disposable income grew by 6.2% in the same period.
The scary part of all of this is that average disposable income (after tax) per person in Canada was $27,000 in 2005. So approximately 44% of our after tax income goes to retail sales...
IMHO, these levels are becoming dangerously high. The United States are experiencing a housing and consumer crisis that was derived from economic expansion and a housing boom. The difference is that their governments continue to rack up debt while ours reduce the debt. If the same issues arise in Canada (housing/spending), will we expect our government to bail us out?
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4 comments:
We just buy much too much stuff, on credit, and I don't think half of us have a real plan to ever pay it off before we're 55. Being south of 55 by quite a few years, I'm concerned the debt load of my parent's generation will be put squarely onto me.
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Anyway, I wonder if you have heard of this story, and what your opinion of it all is. The Supreme Court and the Premier seem to have painted property developers into a corner.
That's a genuine concern for sure. I also think, although without any evidence, that some of the boomer kids are looking towards inheritance to pay off debt, morbid but it happens.
Another issue in the future may be RSP tax paid if the concentration of wealth sits in boomer hands.
I just read the story. From one perspective, I don't know if there is anything there.
Even if a private citizen, mayor, or minister mentioned that to private citizen #2, there was no bribe. The minister doesn't appear to bribe citizen#2 and being a private citizen, citizen#2 will make his own decisions whether or not to bribe.
It looks like there is nothing there. No case. However, that being said, it would be tough to be out 175k when you venture out like that.
I notice you haven't posted in awhile I also noticed on another blog post you said that you thought that we might be heading into something like the Great Depression. I'm starting to think in a similar way. Your blog is interesting to say the least. Especially that you are local like me in Saskatchewan. Obviously at least in part I would have had to be to be interested in your blog. In any case what I find here is interesting keep it up! :)
Chad.
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