With all the media reports of consumer debt, here’s an article shedding some light on government debt.
The Fraser Institute published a report yesterday on Government debt in Canada. Based on the number of households in Canada (renting and owning), every household is paying the interest on $168,986 in government debt today. What happens when the government deficit increases, interest rates increase or our economy doesn’t perform? What happens if all of the above occurs? Who has the debt problem, consumers or governments?