Economic Challenges Research

large scale international capital flows would be associated with the prominence of large international ventures which again could distribute a lot of winnings to a comparatively small (in societal terms) number of beneficiaries.

Whether these shifts were good or bad depends on your political persuasion. Those on the left lament the gaps, often forgetting that the greater income disparities have created bigger incentives to get an education, which has led to a better trained, more productive workforce. The share of American workers with a college degree, 20% in 1980, is over 30% today.

the focus should be on giving everyone a an equal chance to be successful. This might mean making the tax code less regressive by expanding the earned income tax credit, eliminating tax subsidies to the rich, and improving access to quality education. 

In the near term, households are under pressure as rising food and energy costs cut into their budgets

“I will never, never do that again. I want to have the money up front before I buy something, because I don’t want to get into that trouble again,” said Ms. Thornton

the household debt service ratio – debt payments to disposable income – jumped to a three-year high of 7.8 per cent from 7.2 per cent

Kim Thornton, for example, is one fatigued consumer. The mother of four says her family ran up about $50,000 in debt in prior years on credit card spending

In the longer term, high debt levels could restrain spending for years

Canadians are getting the message about whittling down debt, and that is translating into fewer purchases of discretionary goods

reduced hours and leaner wages – a legacy from the recession – mean many families have less money with which to service their debt, he added

record household debt levels have left this country vulnerable to economic shocks

the Canadian banks will report a slight increase in profit for the quarter as they contend with the impact of declining consumer borrowing, moderating capital markets activity and other headwinds.

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With domestic household debt levels hovering close to where they were in the United States prior to the financial crisis, many observers are warning that Canadians need to start paying down debt if the economy is remain on level footing

anadian consumers continue to pile on mortgage debt despite repeated warnings that they need to crank back on borrowing if this country is to avoid a painful real estate correction

Canadian consumers continue to pile on mortgage debt despite repeated warnings that they need to crank back on borrowing if this country is to avoid a painful real estate correction

growth in the overall home loan market "is continuing to be more robust,"

Canada's fourth-largest lender on Wednesday kicked off second-quarter bank earnings season with a 7.5% increase in profit on the back of lower provisions for bad loans

still net borrowers, meaning they borrow more than they save

consumer spending will not be the engine of economic growth in the coming quarters and the inevitable future rebalancing of monetary policy will be a shock to many households

some of the drop in household indebtedness is explained by strong income gains, not by debt repayment per se

sustainable personal growth is likely in a range of 4.0-4.5 per cent. Credit continues to grow at a pace that is two percentage points above that

the level of Canadian household debt — which in December officially surpassed those of our neighbours to the south — is unsustainable

total consumer debt load is reported to be about $1.5 trillion

Data released late last year suggested Canadians owed on average $112,000 — a figure that includes all kinds of debt, including mortgages — and a debt-to-income ratio of 150 per cent means they were spending $1,500 for every $1,000 in take-home pay

Factors that will moderate credit growth over the short term include spending fatigue, a soft landing in the housing market, stricter mortgage rules and Canadians preparing for the higher interest rates that are sure to come as the economy recovers.

consumer debt rose in all provinces

the trend still remains modest compared to the double-digit, pre-recession levels

Average credit card debt

sign of troubled credit health, the national credit card delinquency rate — the ratio of credit card accounts that are 90 days or more overdue — grew 11 per cent from the first quarter of 2010.

average borrower debt on auto loans was also up in the quarter — by 12.4 per cent to $16,189 from $14,402 in the first quarter of 2010

Lines of credit are the most popular form of consumer debt

more than 41 per cent of outstanding debt at the end of the first quarter

consumers should take care to rein in their borrowing

consumer spending slowed during the first quarter, to just 0.1 per cent growth

consumers are focused on consolidating debt after borrowing heavily during the recession

higher energy and particularly gasoline prices are taking a bigger bite out of household budgets, leaving less for other forms of expenditures

high levels of indebtedness are expected to weigh down purchases going forward

still at historic lows, moderate raises in mortgage rates will impact carrying costs negatively, thus slightly subduing housing demand

Average resale prices are expected to rise by a brisk 11.5 per cent to $340,000 this year, but the growth rate will slow significantly in 2012, to 2.9 per cent

that segment falling 20.1 per cent to 1,975 units

5,950 total housing starts forecast for 2011, up 2.3 per cent from the previous year

single-detached market is anticipated to be the hardest-hit

New home construction is also expected to cool down this year

result of an ongoing shift towards more affordable housing types

first-time homebuyers and downsizing empty-nesters at the forefront of Ottawa's housing market

raising the popularity of more affordable housing types such as condominium apartments, townhouses and semi-detached homes

soaring gas prices and lengthening commute times will push up interest in homes in the core

Elsewhere in the country

MLS sales, meanwhile, are expected to be between 429,500 and 480,000 units, with 2012 sales anticipated to be in the range of 410,000 to 511,900 units

slowdown affecting both single-detached homes and multi-family housing

Government spending cannot continue to increase especially when it is financed by debt. The recession was started by economies overloaded with debt. Rather than deal with the imbalances government decided to increase spending "grow the economy" and create more debt. Now we are in a predicament that there are no tools left for governments to throw at the economic problems.

Canada's net debt had grown to $582 billion, up from $516 billion two years earlier.

The government's attempt to continue economic growth by borrowing has failed. Canada's economy is going nowhere and we are farther behind because of government debt. The future does not look much better for Canada's economy.

government borrowing huge amounts of money to bolster the economy

The surplus narrowed in February, on lower exports of crude petroleum and cars, from a revised $382-million, Statistics Canada said Tuesday. Economists polled by Bloomberg had expected a surplus of $500-million.

Both imports and exports fell. Exports tumbled 4.9 per cent after four straight months of growth while imports slid 4 per cent.

Import volumes, meanwhile, fell 4.3 per cent while prices rose 0.2 per cent. Again, most of the drop was due to lower volumes in autos and energy. Exports to the United States fell 3.5 per cent after four months in a row of growth. Imports fell 6.1 per cent, leaving the surplus at $4.6-billion. Exports to countries other than the United States fell 8.5 per cent amid lower shipments of precious metals to the European Union. Energy exports fell 8 per cent, led by a drop in crude “reflecting higher inventories in the United States,” the agency said. That follows a 71-per-cent increase in crude exports from September to January.

In 2010, that savings rate has dropped to 4.2 percent — about $2,500 per household.

the recession has shaken out the labour market. “We’re experiencing a gain in jobs, but people are now in jobs that paid less than what they did.

Mortgages account for about two-thirds of the $100,879 owed by the average household, or about $63,126 per household, with 55 per cent holding mortgages and 45 per cent mortgage-free. The other third is consumer debt, which includes credit cards and personal loans.

“The debt-to-income ratio is concerning … but recently, (mortgage) credit demand has slowed and consumer credit demand has slowed considerably as well. It’s now at less than 5 per cent, which is half of what we saw in the previous five years on average.”

Personal debt consolidation and restructuring expert Jim Ferguson said the most common reason people are getting into overbearing debt is the ease of availability of credit

Canadian debt levels, relative to income, are still meaningfully below peak U.S. levels, but that a further sizable increase would be worrisome.

“Household financial assets are also growing fast due to the strong stock market, which dampen concerns about the debt, but assets can vanish more quickly than debts.”

We are beginning to see the positive results collaboration can bring, including significant savings to protect vital services and ensure our communities invest in innovation and education to create jobs and keep the region competitive in the global economy."

he rate of local government spending in Northeast Ohio is 70 times the region's population growth, 2.8 times its inflation rate and 2.4 times its economic output

government entities spend $20 billion to operate

ortheast Ohio residents have made it clear that more efficient local government is a regional priorit

collaboration of 100 foundations, organizations and philanthropists from across Northeast Ohio