So I saw an interesting graphic on Tumblr comparing the U.S. government spending to a median family income and how it might look, so I have tried my best to dredge up this comparison for Canadians.
This model is already flawed as I am only looking at the model where I (the Big Cajun Man) will take on the guise of the Federal Government and not all governments in general (which would change the debt number much as you will see). The average family income is borrowed from 2011’s median family income from Stats Canada as well.
The numbers I am using are gleaned from a report from Stats Canada, and are at best an estimation.
|Income for the BCM Family||$76,000.00|
|Debt charges as a percentage of income||12.64%|
|Current Family Debt||$180,453.00|
|Debt after this year||$188,573.00|
|Income Compared to Debt||42.12%|
What does this mean? Well if I were the Government I’d be spending over 13% of my income on paying off my debt, however, if you look at my debt, it isn’t really that far out of whack, is it? A family with $180K worth of debt is a little high, and they should think about paying it off soon, but then again it is do-able, over a long period.
Oh and here is a nice graph I made too.
If you look at the U.S. Model it is a much higher Debt in comparison and a much more dire looking pay back scenario.