The economy’s fine, but you’re not getting ahead: Welcome to the ‘me-cession’

[CdnFox]

The economy’s fine, but you’re not getting ahead: Welcome to the ‘me-cession’ | Globalnews.ca

“In the past year, we’ve been flirting close (to a recession) with some very weak growth, but we haven’t had those two quarters of contraction,” says Charles St-Arnaud, the chief economist at Alberta Central, which represents credit unions in the province.

In a recent report giving his mid-year outlook for the Canadian economy, St-Arnaud sought to classify the peculiar economic moment: it’s not a recession, but a “me-cession.”

His thesis is that while the abstract Canadian economy is largely holding up under the weight of slowing growth and restrictive interest rates, individual households are not getting ahead.

Essentially, despite what economists on Bay Street and headlines in the media might tell you, it’s frankly hard out there for Canadians. Whether you call it a recession or not, many consumers are struggling.

[CdnFox]

In practical terms for Canadians it's a recession.  Good jobs are harder to come by, and people's money is going less and less further than it used to.  While the "Official" inflation rate is high but not horrible, the actual practical inflation rate for most people is higher. 

and the tax base is going down.  The average taxable income per person is actually getting worse and that means gov'ts have less money per capita to provide services. 

A similar thing is happening in the states but biden had more room to increase spending and has been able to hide it far better. But in canada - welcome to the mecession. 

[ExFlyer]

Well, if you are not able to buy a house, maybe you should cut back on vacations and new cars LOL

"Over one-third (36%) of Canadians plan to spend more on travel compared to last year. Globally, Canada ranks the second highest market for anticipated highest average spend for leisure trips at an average of $8,824 for all leisure trips in 2024"

"On February 2, DesRosiers Automotive Consultants announced that the Canadian automotive market from reporting manufacturers jumped from January 2023's 98,259 units up to an estimated 112,862 units, a gain of 14.9%."

Me-cession is correct if it means people are all about themselves today and not the future. Rather buy a vacation and a new car than use the money for a home and then complain they cannot afford to buy a home LOL

 

[CdnFox]

6 minutes ago, ExFlyer said:

Well, if you are not able to buy a house, maybe you should cut back on vacations and new cars LOL

"Over one-third (36%) of Canadians plan to spend more on travel compared to last year. Globally, Canada ranks the second highest market for anticipated highest average spend for leisure trips at an average of $8,824 for all leisure trips in 2024"

"On February 2, DesRosiers Automotive Consultants announced that the Canadian automotive market from reporting manufacturers jumped from January 2023's 98,259 units up to an estimated 112,862 units, a gain of 14.9%."

 

 

So 2/3 of canadians are spending the same or less.   Hmmm. So the upper third can afford it whcih means nobody's having a tough financial time?

And now that cars are back being manufactured (remember the shortages during covid) people started buying cars again? 

That's your evidence? 

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Me-cession is correct if it means people are all about themselves today and not the future.

Ahhhh yes comrade!! Da! Deh shoood bee thinking of da motherland! 

(Smak!) what is wrong with you? Of course people are worried if they cant' eat. 

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Rather buy a vacation and a new car than use the money for a home and then complain they cannot afford to buy a home LOL

Sorry to burst your bubble,  but the 1/3 buying vacations and cars may not be the same 50 percent that's struggling. 

20 percent of canadians are using the food banks this year.  Half report they're having trouble just barely getting by.  Is it possible it's the OTHER half that's spending more on their trips?