The trickle down effect
It has been said that if we cut taxes for the rich and help profitable businesses make even more money then the economic benefits would trickle down from the top to the rest of us. But for many in the working class this has simply not been the case. 🙁
The top 1% have never been wealthier, but the rest of us still face many financial roadblocks. Both consumers and governments of all levels are still carrying a lot of debt. However real incomes in the U.S. have been slowly declining since 2008. Up here in Canada our debt-to-income ratio is near an all time high.
We often receive conflicting messages from policy makers. The Canadian Central Bank is keeping rates low to encourage consumers to spend and stimulate the economy. But at the same time it says that rising consumer debt is a major risk in this country. That’s right, patronize consumers for their debilitating debts when the Central Bank is responsible for creating the cheap money in the first place. Sound logic, Mr. Poloz. 😛
“Even a slight [increase] in the interest rate will push thousands into bankruptcy,” says Frank Bennett, a bankruptcy insolvency lawyer in Toronto. We’re already seeing “approximately 10,000 consumers going bankrupt a month in Canada,” Bennett says. “They’re paying exorbitant interest rates on credit cards and household debt. They’re using one credit card to pay another and they’re out of money by Friday night.”
Don’t panic, but be prepared
Random Useless Fact:
This is what happens when an American is asked to label a map of Canada