Media Illiteracy
From the Globe and Mail:
"Seven of the members of the Group of 20 nations are on a trajectory that will leave them with debts bigger than 75 per cent of their economies by 2014" ... "Even in Canada, a relative paragon of fiscal prudence, the combined gross debt of the federal and provincial governments is on pace to reach 79 per cent of gross domestic product next year"
So here's 3 statements in those 2 paragraphs:
1) 7 out of the G20 nations will have a public debt/GDP ratio above 75% by 2014.
2) Canada's ratio will be at 79% next year.
3) Canada is a relative paragon of fiscal prudence.
OK then.
Since I'm posting, I have to say I find it somewhat mystifying how much more attention high levels of public debt get vs. high levels of private debt. I understand there being some more focus on the public debt, but the ratio seems way out of proportion - especially given events of the last few years.
"Seven of the members of the Group of 20 nations are on a trajectory that will leave them with debts bigger than 75 per cent of their economies by 2014" ... "Even in Canada, a relative paragon of fiscal prudence, the combined gross debt of the federal and provincial governments is on pace to reach 79 per cent of gross domestic product next year"
So here's 3 statements in those 2 paragraphs:
1) 7 out of the G20 nations will have a public debt/GDP ratio above 75% by 2014.
2) Canada's ratio will be at 79% next year.
3) Canada is a relative paragon of fiscal prudence.
OK then.
Since I'm posting, I have to say I find it somewhat mystifying how much more attention high levels of public debt get vs. high levels of private debt. I understand there being some more focus on the public debt, but the ratio seems way out of proportion - especially given events of the last few years.
Labels: debt, government debt, media failure, private debt
posted by Declan at
Tuesday, December 08, 2009
2 Comments:
What type of private debt are you referring to? Are we talking about the billions of dollars of loan guarantees via CMHC? Or consumer credit debt?
I find the data on the consumer end is a little more sketchier.
By
Sacha, at 10:24 AM
Well, all kinds of private debt, mainly corporate debt and personal debt - mortgage / credit card / auto / other
By
Declan, at 5:33 PM
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