Fiscal Prudence Be Damned!

As pandemic-related government aid and loan deferral programs begin to wind down, the latest MNP Consumer Debt Index finds the number of Canadians hovering close to financial insolvency has reached a five-year high. More than half (53%) say they are $200 or less from not being able to meet all of their bills and debt obligations each month, a whopping 10-point jump from December. This includes three in 10 (30%, +7pts) who report they are already insolvent with no money left at month-end to cover all their payments.

The full MNP report can be found here

We get it that everyone is entitled to anything they want, right now.  We get that fiscal prudence is old fashioned and outdated.

The big wonder is the why behind this growing phenomenon:

  • Cheap and easy money and credit?
  • Bad parenting?
  • Poor public education in the area of basic economics & finance?
  • Unilateral subversive attempts by individuals for personal gain through as an unofficial wealth re-distribution scheme?

 

We’re at a loss.  If any of our readers have any other possible ideas as to potential reasons for this growing phenomenon feel free to add your comments on whatever platform you are accessing this post.