OECD household disposable income: Canada has done well!

[Locutus]

"Since 2007 OECD household disposable income has risen faster than GDP

Since 2007 household disposable income has risen faster than GDP in the OECD, a mostly rich-country club. Gross household disposable income per person increased by 8.1% between early 2007 and early 2015; GDP per person increased by only 3.2%. This is partly because GDP fell at the start of the financial crisis, at the same time as automatic stabilisers like welfare payments propped up household income. Norway is a good example of how GDP growth figures are not always the best measure of material well-being: high wages and labour-participation rates have boosted disposable income per person, while GDP per person has fallen over the eight-year period because of declining oil and gas production.

GDP and household income | The Economist

 

[darkbeaver]

Somethings wrong with that picture.

 

[Dixie Cup]

Somethings wrong with that picture.

And that would be......????

 

[darkbeaver]

Why Has Labor’s Share of GDP Declined for 40 Years?

Posted on September 22, 2015 by Charles Hugh Smith
Why Has Labor’s Share of Gross Domestic Product (GDP) been declining for 40 Years? The question cuts right to the heart of the core socio-economic issues of our era: the decline of secure work and the explosive rise of wealth and income inequality.

(chart courtesy of mdbriefing.com)
Over time, economic trends typically reflect macro conditions such as productivity, cost of energy, percentage of the adult population in the work force, etc.
For example: when oil shoots up in price, recessions follow. This is an obvious and well-supported correlation: when households have to spend more income on fuel, they have less to spend on other stuff, an

 

[tay]

On cue, total consumer debt rose 4.9% year-over-year in July to C$1.86 trillion. A trend that has been picking up speed recently: on a monthly basis, consumer debt jumped in July at an annualized rate of 5.4%. Mortgage debt – over two-thirds of total consumer debt – soared at an annualized rate of 6.9%.

Yet disposable incomes only inched up 0.8% in the second quarter, Statistics Canada reported on September 11. So the household-debt-to-disposable-income ratio, a measure of household leverage, hit a record 164.6%, the largest jump in the ratio since 2011:

The Time Bomb under Canada’s Economy: Soaring Household Debt, and Suddenly Delinquencies! | Wolf Street


Canada’s household debt ratio hits record as what we owe grows faster than our incomes

Canada’s household debt ratio hits record as what we owe grows faster than our incomes | Financial Post

 

[Locutus]

if any consumer is in debt, that ain't my problem nor the governments. but here's an idea...stop buying so much useless keep up with the joneses crap.

 

[AnnaG]

I'm with Loc. Live within your means. "Do you REALLY REALLY need to buy your kid 20 new games for the brand new (rather than last year's model) Xbox? And do you REALLY REALLY need a new dress? And do you REALLY REALLY need that Snapon wrench rather than the Craftsman wrench?" sort of idea.
Household debt may be so big because of the interest rates. As far as I know, some credit cards are like 20% a year.

 

[Twila]

oh, I misread the title. Thought it said OCD household disposable income...thought there were going to be some oxymoronics going on...

 

[AnnaG]

I thought the same. Was kind of disappointed because I thought this would be another fun thread. lol

 

[darkbeaver]

if any consumer is in debt, that ain't my problem nor the governments. but here's an idea...stop buying so much useless keep up with the joneses crap.

It has already become your problem you inherited it, the banks don't care about your personal responsible spending. An indebted consumer usually holds back on tax payments as long as he/she can. And your suggestion of frugal purchasing will do nothing to support our economy. The Joneses eat three squares a day have snowtires already and fuel oil or propane and live under a working roof. Jones aint making what he used to when he was younger.

 

[taxslave]

I'm with Loc. Live within your means. "Do you REALLY REALLY need to buy your kid 20 new games for the brand new (rather than last year's model) Xbox? And do you REALLY REALLY need a new dress? And do you REALLY REALLY need that Snapon wrench rather than the Craftsman wrench?" sort of idea.
Household debt may be so big because of the interest rates. As far as I know, some credit cards are like 20% a year.

Governments need to live within their means as well. Credit has become too easy to get so many people just buy whatever comes along. Inflated wage rates for government employees, especially at the municipal level and a misguided notion of local government's responsibilities has pushed up taxes and debt. Every dollar not taken in taxes is another dollar to help the economy.

 

[Locutus]

It has already become your problem you inherited it, the banks don't care about your personal responsible spending. An indebted consumer usually holds back on tax payments as long as he/she can. And your suggestion of frugal purchasing will do nothing to support our economy. The Joneses eat three squares a day have snowtires already and fuel oil or propane and live under a working roof. Jones aint making what he used to when he was younger.

no, it's not my problem at all. I owe zero money as revolving debt as well.

these entitled babies can buy all the sh!t they want but don't come crying to me or the government. oh, and these idiots will have more disposable household income if they give their pointy heads a shake from time to time.

 

[petros]

It has already become your problem you inherited it, the banks don't care about your personal responsible spending. An indebted consumer usually holds back on tax payments as long as he/she can. And your suggestion of frugal purchasing will do nothing to support our economy. The Joneses eat three squares a day have snowtires already and fuel oil or propane and live under a working roof. Jones aint making what he used to when he was younger.

The bank doesn't make someone go onto spending sprees.

 

[Locutus]

The bank doesn't make someone go onto spending sprees.

wants over needs does.

 

[petros]

Weak minds.

 

[Danbones]

We have our OWN central bank which Is/was supposed to supply the government with no interest money for capital costs etc...
why are we even in debt to international lenders in the first place?

Harper called an election because he is hoping the certain crash of the bailed out stock markets will happen AFTER.
After all he did ensconce Greek and cyprus styled Bail-ins in the 2014 "Budget"...for a reason
as soon as the US raises interest rates or tapers off the "quantitative easing" its going to be game over.

 

[petros]

Because they paid off what we owed with far better terms and profit participation and term partnerships on thing we could never afford borrowing from ourselves.

 

[Danbones]

Because they paid off what we owed with far better terms and profit participation and term partnerships on thing we could never afford borrowing from ourselves.

link please

 

[petros]

Did you have some brain crippled delusion that there were no limits and consequences borrowing from ourselves?

 

[Danbones]

Did you have some brain crippled delusion that there were no limits and consequences borrowing from ourselves?

interest free vs interest?
I have to explain that to you?
my god man