Canada plays a starring role in an OECD report released in late-November. The OECD is an co-operative organization that monitors countries' economic situations and issues warnings when needed. Canada is now on notice, thanks to Canadians' sky-high debt levels.
MP Kevin Sorenson thinks Canada's debt problem needs to be addressed by the Federal government.
"We are much higher than other countries when it comes to household debt," explained Sorenson. "I think it behooves us as families, and individuals, and governments as well, to live within our means when and where we can [and] have a little bit set aside so, should an emergency come, we have the ability to deal with it."
How exactly does Sorenson see the Federal government stepping in to fix the problem?
"I think, first of all, it has to be a plan that leads by example, and we've seen a Liberal government that has been spend, spend, spending even in times when we are out of a recession. They continue to rack up national debt and this becomes problematic."
The 2017-2018 Federal budget released in March 2017 forecast a deficit of $28.5 billion. While deficit spending is a problem, Sorenson sees increased taxation as a source of concern as well.
"When they increase taxation on average Canadians, we recognize then that again, that's hurting available resources for every family," he said. "When you're taking money out of the pockets of Canadians, it gives less money for them to pay down debt, less money for them to invest. And also, less money for them to spend."
The report found that Canada's household debt-to-GDP ratio was 101 per cent, the highest of any other country surveyed.
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