Canadians are groaning under the weight of debt and high interest rates attached to it..But Prime Minister Justin Trudeau wants them to pile on more, dig themselves in deeper, be more beholden to debtors empowering them to be the head not the tail in their lives..That will strengthen the economy, he said..Did he really say that? He did..Trudeau advised Canadians to borrow money to spend — just like his federal Liberal government does with abandon..But that hasn’t worked out well, has it? Since 2015, the Liberal government raised per-person debt levels by 35.3% — to $47,070 — the third highest amount since World War II, according to a Fraser Institute study last July..Trudeau’s sterling economy ‘fix’ to get this country back on track requires Canadians to rack up their credit cards — which happen to have the highest interest rates..“If ... you use your credit card, you go into debt to build an expansion on your house, that you’re then going to sell your house for more,” said Trudeau in a video Monday..“If you’re going to make investments that are going to return, that is how you grow a strong economy.”.This economic tip comes from the same guy who justified extreme federal spending during the pandemic by saying, “We took on debt, so Canadians didn’t have to.”.Did he expect Canadians to be dumb enough to believe the Tooth Fairy would handle paying that off? Surprise! The Tooth Fairy is still AWOL — and Canadians are saddled with what now stands at a $1.3 trillion debt..In March 2021, Trudeau defended his ballooning pandemic deficits — including the Canada Emergency Response Benefit (CERB) — by saying they relieved pressure on families burdened with high household debt levels..See, the Liberals did Canadians a tremendous favour by spending like drunken sailors..Had they not, “What would Canadians have done? They would have loaded up their credit cards,” said Trudeau..Bad then, but good now. Try to keep up with Trudeau’s shifting logic..To his credit Trudeau didn’t suggest spending on frivolous little things like the $9,000 bee farm included in the $8.6 million upgrades to his official Harrington Lake summer residence..Go big, he said. Build additions onto your homes. Increase your personal debt loads..Is this sound advice to struggling Canadians in this economic climate with a recession looming on the horizon and unemployment forecasted to rise this year?.In Trudeau’s Canada, too many Canadians can’t even dream of affording to own homes to renovate..According to Statistics Canada, only 30% of Canadians are debt free. The average two-person household has a combined debt of $41,500 — not including mortgage payments..Only 34% of Canadians are mortgage free..Maybe the renovations would reap a higher selling price. Maybe not. Depends on the housing market at the time of sale..In the meantime, the credit card debt would have to be repaid. Trudeau didn’t mention anything about that part of the deal. Is this like his “the budgets will balance themselves” logic?.Meanwhile, Canadians are paying 45% more interest than a year ago, said Statistics Canada last month. It’s the fastest increase since 1990..With interest rates expected to remain high, debt servicing costs are expected to keep rising until the second half of 2024..The Bank of Canada will announce Wednesday whether it will hold, raise, or cut its overnight rate. The key lending rate that started out at 0.25% in 2022 nor sits at 4.5%.Meanwhile, inflation officially stands at 5.2%, although it feels like more. And who knows where it will go from here..But ignore all that. Pull out that credit card, call the contractor, and don’t fret about the bill until it comes in..It’s safe to assume that Trudeau has never been weighed down with worry about how he was going to pay off credit cards or a bank loan..No one should begrudge another’s privileged life. But after eight years as prime minister, he’s obliged to not be oblivious or insensitive to what Canadians are going through. If he doesn’t get it by now, he never will..Building on a luxury addition, or renovating a kitchen takes a backseat to putting food on the table in many homes..Too many Canadians have accumulated credit card debt to pay for survival items, bills, and basic home repairs never mind fancy additions..What about those with cards at their limits? Would Trudeau advise them to just apply for another card to cover those renovation bills so they can do their duty to build up the economy?.This is not a solution. No amount of home renovations will rescue the economy..Canadians would be in better financial shape and might not have to borrow money for anything if the Trudeau government dealt with niggly things like inflation, high taxes, spending and borrowing, or any of their economic policies weighing Canada down..Using a credit card at high interest rates, is bad advice..Just ask the credit counselling companies doing booming business to help Canadians manage their debt..They’ll say a few things for sure..Get rid of the high-interest debt first..Don’t get someone else to buy you a bee farm if you aren’t personally paying the beekeepers to tend to it..And there is no Tooth Fairy.
