Debt Fuel Ignition Failure
This 4-chart mashup looks at Canadians (households and business) continuing to vigorously pile on debt at an even steeper angle of acquisition than before the crash into the 2009 pit of gloom.
Canadian business has been busy reducing its labour cost but not fast or deep enough to maintain productivity or create new orders greater than before the pit.
The 5 years of Canadian negative output is a surplus boon to other countries and their productivity programs.
If we are willing to increase productivity to maintain our living standard, but reject reducing our labour cost by the expedience of withering real wages, then we have to build better machines and algorithms for production. That means changing skills from low cost physical labour to comprehensive high value intellectual labour and management combined.
If we are not willing to compete on productivity, debt will take a long time to transform into equity and will be limited in its ability to leverage.
Meanwhile Canadians blithely pile on debt. Are you over leveraged? Figure it out.
History, Charts & Curated Readings
"Progress, far from consisting in change, depends on retentiveness. When change is absolute there remains no being to improve and no direction is set for possible improvement; and when experience is not retained, as among savages, infancy is perpetual. Those who cannot remember the past are condemned to repeat it." George Santayana Vol. I, Reason in Common Sense
"History, real solemn history, I cannot be interested in.... I read it a little as a duty; but it tells me nothing that does not either vex or weary me. The quarrels of popes and kings, with wars and pestilences in every page; the men all so good for nothing, and hardly any women at all - it is very tiresome." Jane Austen spoken by Catherine Morland in 'Northanger Abbey'