Canadian households are about to be hit with a demand limiting factor—income. Household disposable income growth is failing to keep up with inflation according to StatCan data. Even worse, once adjusted for inflation and the country’s booming population growth, it paints a dreary picture as debt problems surface.
Household disposable income is a household’s income after the net of mandatory transfers. Wages, and social security payments are examples of income included. Paying income taxes, and making social security contributions are examples of mandatory transfers. At a high level, it’s the income that’s left to spend after the government’s cut.
