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submitted 1 year ago by avidamoeba@lemmy.ca to c/canada@lemmy.ca

Older millennials, adults aged 35 to 44, had debt-to-disposable income ratios around 250 per cent in 2019, while Freestone noted that metric was roughly 150 per cent for the same age group in 1999.

Can confirm we're sitting around 250% but this is after exercising significant restraint to not take on as much mortgage as the banks would have given us. Everyone I know who bought over the last couple of years went all out and I can't imagine them being any lower than 300-350%.

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[-] avidamoeba@lemmy.ca 4 points 1 year ago* (last edited 1 year ago)

If we assume people are capable of making rational decisions and participate in a free market, then they absolutely are to blame for taking on ridiculous debt loads. If we assume the opposite, then their actions were the product of the environment. We seem to want to have it both ways. We want people to be free to do whatever they want without (government) intervention when the number's going up. For example people were really opposed to the introduction of the mortgage stess test. On the other hand we want to absolve people from responsibility and defer to the environment when the number is going down and they're suffering post their earlier decisions. "Why didn't someone do something about X, Y or Z which we perceive is the reason of our suffering."

Personally I do think people's actions are a lot more a product of the environment than anything else. If you ask me, most people shouldn't need to participate in asset markets to have a place to live or have income during retirement. They simply can't compete. But many fellow Canadians don't feel this way, especially when the number goes up. And so we are where we are. 🥲

[-] ShaggySnacks@lemmy.myserv.one 4 points 1 year ago

That is the failing of economics and social theories, that people will think and behave in a rational way. People don't think or act rational all the time. I would argue that for many people, we generally act on feelings and emotions.

[-] girlfreddy@mastodon.social 2 points 1 year ago

@avidamoeba

"We want people to be free to do whatever they want without (government) intervention when the number’s going up."

Who is this "we" you speak of?

[-] avidamoeba@lemmy.ca 1 points 1 year ago
[-] girlfreddy@mastodon.social 1 points 1 year ago

@avidamoeba

Cats don't buy houses so they don't count.

this post was submitted on 24 Aug 2023
250 points (97.3% liked)

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