The result of decades of credit inflation and wage suppression:
Skyrocketing prices are forcing more Canadians to make tough decisions, leaving even middle-class families to choose between buying the food they need and paying their bills.
Yeah, an overall inflation rate of 50% in three years will do that.
Christine Taylor, who lives in southern Ontario, said she's finding it hard to pay all of her family's bills, and she worries about those less fortunate. "This direction is not economically sustainable. It will break people — not only financially, but emotionally and mentally," she said.
Taylor, who has a job in the fuel and energy industry, said she and her husband, who works in home and mobile electronics, bring in a combined annual income of about $85,000. Yet it's not enough to keep up with all of the expenses that come with owning a home and raising two teens.
Annual combined income: $85,000
Income tax: $17,000
House upkeep: $6,000
Utilities, phone, internet: $4,000
Car related bills: $12,000
Income left after all the above expenses: $6,000
That's $6,000 for a family of four. They have to plan for phones, computers, clothes, sports equipment, entertainment, vacation, emergency repairs, etc. on just $6,000 for the entire year. Imagine the stress of losing work hours or getting fired.
Before the 1990s, it was possible for the average family to live a comfortable life on one median salary. But thanks to the insidious central banks that keep printing money, a sharp increase in the number of women in the labor force, and the importation of millions of cheap foreign workers, we've finally reached the point where it is difficult for the average family to live a decent life on two median salaries.