How dangerous is Canada’s G7-leading household debt?

In today’s Big Story podcast, Canadians currently carry the most household debt of any country in the G7, and it’s also amongst the highest of all industrialized nations in the world. As the cost of living continues to rise, an inability to manage and service this debt could have profound consequences for our economy.

Jim Stanford, economist and director of the Centre for Future Work, says Canada has been leading in household debt for years, but now rising inflation and interest rates are adding to financial stress/

“I don’t think we should describe this in terms of individual failing or individual responsibility. There is no doubt it’s been harder for families to make ends meet over the last couple of decades,” says Stanford.

So why do we tend to view household debt as a moral failing rather than a reflection of the country’s economic realities? What factors have contributed to the alarming surge in debt, and what measures could mitigate it?

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