Part 2 labour Day lament

by Chris George from By George Journal on Substack

Canadians are drowning in debt, many barely keeping their heads above water. How else do you describe the rash of studies and data points reported in the last six months. Here are a selected few:

The majority of Canadians are having to spend more than they earn and need to dip into savings or household lines of credit, or borrow to make ends meet. (Boston Consulting Group)

Millions of Canadians have “no margin for error” – 53 per cent struggle to keep up with financial commitments, 50 per cent use savings and 33 per cent borrow to cover expenses. Forty percent of Canadians are deeper in debt this year than last year. (Financial Consumer Agency of Canada)

One in every seven dollars Canadians earned is already spoken for to cover minimum debt payments before any other bill is paid or groceries are bought. Household credit market debt has risen to $3.25 trillion, up 4.4 per cent in a year – and this is the sixth consecutive quarter in which Canadians’ debt outpaced income growth. (Statistics Canada data as reported in Better Dwelling)

Consumer bankruptcies are up 13.5 per cent in 2026 Q2 over Q1, and 10.3 per cent year-over-year. Insolvencies have more than doubled since 2020 – there has been six straight years of rising levels. (Office of the Superintendent of Bankruptcy)

Nearly half (45 per cent) of Canadians who have renewed their mortgages this past year now face housing costs of 50 per cent or more of their monthly household budget. (rates.ca mortgage website)

Canada’s household debt is 103 per cent of GDP, which makes Canadians the most indebted people in the G-7 and the second worst in all the world. For every dollar of disposable income, Canadians owe nearly $1.77 in credit market debt. (OECD data as reported in The Hub)

It is no surprise that the latest survey from United Way Canada revealed that 60 per cent of Canadians report anxiety when thinking about their personal finances
It has become lamentable for Canadians who have witnessed the stunning deterioration, and even more so for those who are now trying to raise a family, hold down a job, and work through it. Indeed, there’s a lot to think about this Labour Day. Small wonder how Canadians’ happiness standing in the world has fallen from 6th in 2013 to 25th ranked today – and sadly, Canadians aged 15-24 are ranked 71st.

And this weekend, no doubt Canadians will be entering into conversations on their new normal: planning meals without meat and fresh vegetables, budgeting for mortgage payments, taxes, and minimum payments on their credit cards, and planning for family staycations rather than that indulgent Tuscany getaway that was recently in the news.

More facts and figures on the website bygeorgejournal@substack.com

We need to remember all of this when it comes to elections and budget time. We need to remind all of our politicians who represent us that they need to spend tax dollars wisely and to use restraint when it comes to new spending. We all need to stay engaged with our politicians at all levels especially the local municipal level where we can make the most difference.