There is a dark cloud overshadowing Canada’s socio-economic progress

BY MICHAEL THOMAS

An economy poll by Licensed Insolvency Trustees, Bromwich+Smith reveals that financial darkness has multiplied in a big way for many people and small businesses in this country as of March 2020.

The poll shows the perception of debt, stigma and insolvency in clear view through the eyes of the public that is living this nightmare. This is the second poll in a two-part fall survey series that is designed to create a benchmark of public attitudes and force a discussion around the way that people who are in debt are viewed by others who are not in the same situation.

After decades of trying and in some cases regaining their financial powers, many groups of Canadians now feel that this has been gradually but forcefully taken away from them with no recourse.

When asked which groups have lost the most ground in the past six months, low-income earners topped the list (73%). Followed by seniors (57%), people on disability support (47%) and women (46%). Finishing out the list were new Canadians (42%), visible minorities (40%) and people on welfare (37%). Overall, nine-in-ten respondents felt the situation since March had set back socio-economic progress in general.

The survey also reveals that 54% of women polled feel their gender has lost ground in 2020, meanwhile only 36% of men feel the same way about their better half’s fortunes.

Toronto Caribbean Newspaper spoke with Jasmine Marra, Vice President at Browmich+Smith, and when asked if she sees any end to this troubling situation, she said, “I think it is a bit of a scary reality. The federal government certainly has done what they can to provide some subsidies and we saw the federal bank announce this week that there are no further plans for additional relief, so I think for those owning small businesses or Canadians in general that there are more likely to explore insolvency in the future.”

Marra also said that the results of the Economy Poll are staggering, especially when viewed through the prism of what’s happened to women’s fortunes in 2020, and that throughout this situation, women’s participation in the Canadian labor force fell from an all-time high to its lowest level in over three decades.

In general, the lockdowns have had deadly financial ramifications across the country. To that end, one-in-five Canadians (19%) are likely to explore insolvency in the near future, with 14% of Canadian adults likely to seek advice about bankruptcy or a consumer proposal in the next month.

This poll continued the theme of debt stigma by addressing, specifically the way people think of others and debt. It found that nine out of ten people acknowledged that people who don’t pay their debts “Perhaps can’t afford to.” When you dig deeper the stigma still remains. More than half of people (54%) responded, “People who don’t pay their debts are irresponsible.” One-third called them “Selfish,” (34%) and one quarter called them “Lazy” (26%).

About the stigma surrounding debt Marra reported, “A lot of people believe that we are not managing our finances, but that is not true. More than likely, we see an external trigger. Most of the time it’s a divorce, unexpected job loss, or a critically ill spouse. These big unexpected events are the cause of the strain in our finances.”

In proving that debt does not discriminate Martin Luther King, Jr. famously said, “The arc of the moral universe is long, but it bends toward justice.”

Marra said that the present situation, despite its problems, should be a teachable moment for everyone as many who thought they were financially balanced are now facing difficulties. It is crucial that Canadians realize that especially during these gloomy financial times that it’s okay to seek professional financial help.

“One of the first things,” she said, “Is getting a handle on your finances, you know I think one of the most wonderful things about Canadians is that we are hopeful. We hope for the best, we believe in a brighter future, and for the most part it’s a country where we can achieve those things.”

For more information on the poll and the people who conducted it please check here https://www.bromwichandsmith.com/