Group items tagged

1) What do you think are possible solutions for the rising inequality? 2) Since the rich are taking a higher percent of overall income and Canada is in debt, do you agree with lowering their taxes?

This article talks about how the government is doing very good with reducing the inequality with the tax cuts and all but that they could be more aggressive. It's suggesting that we need a new redistribution plan but mainly focuses on what it counts to be the most important thing in getting rid of the debt, the governments role in all this. Asks questions like what if the government had made different decisions. 

Some 6.4 per cent of Canada's total workforce-1.2 million people-now consists of part-time workers under 30 who wish they could work full time. university-educated Canadians experienced a relative increase in unemployment between 1997 and 2005 and a corresponding dip in relative wages, according to a federal government study. By contrast, those with a college, or even a high school education, managed to improve (or at least maintain) their outlook, relative to other workers. In fact, the only group that experienced a similar relative increase in unemployment during the period were those Canadians without even a high school diploma. Employers increasingly expect workers to pay for their own retirements. That's not easy when you don't have money. A survey by the Bank of Montreal found that only about 10 per cent of Canadians aged 18 to 34 had given any thought to retirement planning. Job security is also increasingly scarce. Stung by the 2009 recession, employers in industries ranging from retail sales to information technology are preoccupied with building a flexible workforce In an effort to close the gap, the federal government is planning to bring in as many as 3,000 foreign skilled workers this year by De-emphasizing the university-educated and focusing instead on welders and electricians. Economists say the market will eventually sort itself out. Wages and benefits in the trades should become more attractive as desperate employers try to woo new workers.

Q1: Do you think putting up their uninhabited islands is a good recompensation method in case Greece doesn't pay off their loans and are the Germans indebted to Greece for their misactions during World War 2? Q2: Do you think Greece should be toughening it's austerity measures even though it might mean increasing Greece's current unemployment rate?

1. If Greece's economic situation worsens I believe putting up their uninhabited islands would be a great way to compensate because they are likely to be worth a lot and currently are not being used. 2. In my opinion, I feel Greece's unemployment rate is at a very risky point and doing anything to further detriment that would be unwise.

From the mid 1990's - late 2000's Canada had the fourth largest increase in income inequality among it's peers. Income inequality, along with corruption, were named as the two most serious challenges facing the world at this year's World Economic Forum in Davos. the impact of the growing income gap has gather little attention in Canada market forces and globalization are increasing disparity, along with institutional shifts such as dwindling unionization rates and stagnating minimum wages.

Canadian debt/income ratio isn't as bad as it looks. Because Canadians pay for their health care through their taxes, their disposable income is distorted relative to the U.S. In terms of personal income, the ratio is actually closer to 118%, rather the scary 165%. Canadian household debt relative to assets (19%) and net worth (24%) is below prior peaks of 20% and 25%, respectively. Rosenberg estimates Canada would need to see a 20% drop in the housing market to get net worth/income ratio down to the U.S. level. Canadians have more equity in their homes - 69% of the value compared with 43% in the U.S. "This equity gap is a prime reason why Canadian household net worth/income ratio (at over 500%) is some 35 percentage points above U.S. levels," Rosenberg writes. Canadians are better able to service their debts. Canadian wage growth at 4% a year is about double what it is in the U.S. - a rise that pretty much matches the average interest rate they are paying. The debt-servicing ratio in Canadian households is now just over 7% - a level it has only been below in the past 15% of the time. So even though Canadian interest rates are 75 basis points higher than in U.S, it is not hampering our ability to handle debt.

Canadian government article advising consumers about debt, such as recognizing danger signs, various methods to deal with it, and information on declaring bankruptcy in case consumers are unable to pay off their debts.

Household debt contributes to recessions and depressions, one major cause is banks lowering their lending requirements to make more money. Household debt can be reduced through income and savings, debt negotiations and inflation.