Re: Credit cards main cause of high debt, Jan. 27
Growing up in Ontario in the 1960s I remember a good many of my friends’ fathers worked in the local steel mill. It was a typical job an immigrant would occupy — unionized, with a pension plan, health benefits, a decent wage that allowed the family to own a modest home, put food on the table, own a car, and even take a vacation once a year, or have a fishing boat in the driveway.
By the time the kids were grown, the house was paid off, and the parents were able to help the kids go to university or college. That lifestyle no longer exists for most people. Slowly, so that no one really noticed what was happening, over time the take home pay was not quite keeping up with the cost of things. For instance, 10 years after I bought my first car the equivalent car cost $10,000 more. My pay, which would have been considered a good middle-income wage, did not go up $10,000 in that same period.
So, to maintain a standard of life that their parents enjoyed, which they quite reasonably expected, people had to go into debt. People charged purchases to credit cards, big ticket items at first, but gradually it became necessary to use credit to buy essentials like groceries. People took on lines of credit from their bank, putting themselves into a perpetual state of indebtedness. The people lending the money got richer, the shareholders and executives of corporations got richer as the money they saved in wages went into their pockets instead.
The fatal blow to middle income came with globalization, when industry moved en masse to the Third World to exploit cheap labour. Ontario was hit hard as a good part of the economy used to be based on the production of goods. And now, you have a race to see who can offer the lowest wage. Many U.S. states have declared themselves “right to work” states, so that unions can be bypassed, and the desperate unemployed will work for ever lower wages. In Ontario, the governement waged war against unionized teachers. So, hard working Canadians, the ones lucky enough to have a steady job, have to either carry excessive debt, or do without.
And all of the money that was given back to corporations and the rich, as an incentive to invest back into the Canadian economy, turned out to be a nice bonus to the executives and shareholders, and it seems, the only inducement to operating in Canada, is a wage structure competitive to the Third World.
Sylvia Castellani, Bradford
