The global economic situation will likely not improve in the near future, as governments and households pay the price for years of spending too much.
That's the view of David Chilton, the author of "The Wealthy Barber" and the newest "Dragon" on "Dragons' Den."
"I do think in the long term we will work through our challenges, but in the short and medium order, it's tough. There's just too much debt in the developed world relative to income," he says. "We're going to go through a time of adjustment and there will be some pain. I think people who think we're already through it are mistaken. There are going to be some hiccups, and beyond-hiccups."
Chilton says Canada's economy might be better off than other countries', but he compares it to "being the valedictorian at summer school."
He says Western society has lost perspective on what creates happiness, as people define themselves by what they own.
"As corny as it sounds, we've started to emphasize consumption over investment and everything else," explains Chilton. "I think beyond that interest rates have pulled people in. They've fallen so much it's easy to finance debt and that's how people have been able to do this, this 'keeping up with the Jones''."
Chilton spoke to a packed theatre at Manitoba Ag Days on Tuesday.
Source: Steinbachonline