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On July 1, Canada Day, Canadians awoke to a startling, if pleasant, piece of news: For the first time in recent history, the average Canadian is richer than the average American.
According to data from Environics Analytics WealthScapes published in the Globe and Mail, the net worth of the average Canadian household in 2011 was $363,202, while the average American household’s net worth was $319,970.
Okay, it's a fair assessment of how things have gone down and why, I'll give it that. But I don't think this situation of being wealthier than the Americans will last, because it's largely due to us being at the peak of a housing bubble that's just starting to deflate and the American RE market being at it's nadir and just starting to climb back up across the country. When the real estate markets even out to more appropriate prices I think we'll see much less of a gap between families in the two countries. In fact, I predict they'll surpass us again, especially if oil prices stay low or decline.
The net worth thing is not that important. When the majority of Canadians have their house as by far the biggest asset, they aren't 20% richer when their house appreciates by 20%. What are you gonna do, sell the house?
What about income, has medium income in Canada surpassed that in America? I think that's more meaningful. It is like a company's financial statement, cash flows are usually more indicative of its operation than the balance sheet.
I agree with the posts above and will also go further to refute the writers reference to "hardheaded socialism' being responsible. Complete nonsense.
Present gov't inherited a surplus and has since squandered it. Present gov't in the form of it's Prime Minister when still a back bencher would have deregulated the banking industry up here as it was the flavour of the month down below us. The liberal Paul Martin fought that off thankfully.
We needn't crow too loudly as when you make your living fetching food for an elephant and the elephant dies or at least stops eating.........????
I agree with the posts above and will also go further to refute the writers reference to "hardheaded socialism' being responsible. Complete nonsense.
Present gov't inherited a surplus and has since squandered it. Present gov't in the form of it's Prime Minister when still a back bencher would have deregulated the banking industry up here as it was the flavour of the month down below us. The liberal Paul Martin fought that off thankfully.
We needn't crow too loudly as when you make your living fetching food for an elephant and the elephant dies or at least stops eating.........????
I agree to a certain point but I think what the article is calling 'hardheaded socialism' is simply that Canadians don't freak out over every single instance of regulatory action or government. Hearkening back to the "who was Canada's greatest PM' thread, I think that perhaps in the future, Paul Martin might be on that list just for what he saved us from.
But I don't think that the US economy will recover to the point it was before - maybe not ever, and almost certainly not for many, many years. I think the world is heading into an overall recessionary state - which can't help but affect Canada, the question being how much. I don't think any country will remain unaffected.
The $363,000 net worth for the Canadians is just inflated because housing prices are so expensive in Canada. If you have a little bungalow in Toronto it's valued at I dunno, $380,000. In the U.S. a little bungalow in most places might have a value of about $150,000.
It doesn't mean the average Canadian has any more purchasing power. In fact, they have less because everything from cars, to haircuts is so expensive in Canada.
The $363,000 net worth for the Canadians is just inflated because housing prices are so expensive in Canada. If you have a little bungalow in Toronto it's valued at I dunno, $380,000. In the U.S. a little bungalow in most places might have a value of about $150,000.
It doesn't mean the average Canadian has any more purchasing power. In fact, they have less because everything from cars, to haircuts is so expensive in Canada.
That's as nonsensical as saying that the little bungalow down the road with a selling price of $200,00 would sell for $500,000 in Vancouver. What would the little Toronto bungalow sell for on Rodeo Drive in Beverly Hills?
I agree to a certain point but I think what the article is calling 'hardheaded socialism' is simply that Canadians don't freak out over every single instance of regulatory action or government. Hearkening back to the "who was Canada's greatest PM' thread, I think that perhaps in the future, Paul Martin might be on that list just for what he saved us from.
But I don't think that the US economy will recover to the point it was before - maybe not ever, and almost certainly not for many, many years. I think the world is heading into an overall recessionary state - which can't help but affect Canada, the question being how much. I don't think any country will remain unaffected.
It's gonna be bad. I was sort of banking on China continuing to do well, but no, they just look nice and shiny to foreigners who haven't a solid understanding of what a basket case the country can be economically. Their absurd housing bubble can't go one forever, soon they'll be in the same boat as the rest of us.
Also agree with ellemint that unless you're comparing purchasing power, you can't argue that we're actually wealthier.
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