The Bubble: A chronicle of credit is the economic story of our times, from the federal deficit crisis of 1995 to the dramatic growth of household debt to historic levels today. Did government help or hurt the nation with 0% down payments and easy financing? This episode looks for answers. Here is a video direct link.
This story begins with the last time Canada became serious about resolving its federal deficit and debt problem in 1995. Remarkably, back then Canada was in a minority globally with 70% debt to GDP. Today most developed countries have debt levels that are similar and higher than this. It is also worth noting that in order to break the over-spending addiction back then, Canada had to make cuts across the political spectrum including the military, arts, education and health care. It is also important to realize that while Federal Canadian debt is a lower percentage of GDP today than in 1995, provincial and consumer debts are much, much higher. Canadians have some serious fiscal slogging ahead as we work our way back out of our present debt hole.