The Average Canadian is Now Richer than the Average American

  • Share
  • Read Later
David G. Miller / Getty Images

Canadian currency ranging from $1 (loonie) and $2 (toonie) coins, to $5, $10, $20, $50, and $100 bills.

Watch out, Americans: Your thrifty, socialist neighbors to the north have stealthily become richer than you.

Over the past five years, the average net worth of Canadian households has exceeded that of American households.  So for the the first time in history, Canadians are wealthier than Americans — by more than $40,000, on average. In 2011, the average net worth of a Canadian household was $363,202, compared to $319,970 in the U.S., according to Environics Analytics WealthScapes data published in the Globe and Mail. (‘Average net worth’ measures the total combined value of a household’s liquid and real estate assets, minus debt.)

(MORE: Ten Things That Cost More Outside the U.S.)

The figure takes into account the relative weakness of the U.S. economy right now, as well as the recent strength of the Canadian dollar, which is now almost on par with the U.S. dollar, the Globe and Mail points out. These figures also ignore public-sector debt, which accounts for a higher proportion of GDP in the U.S than in Canada. And according to the latest jobs numbers, Canada’s unemployment rate fell to 7.2%, while the United States’ remained stagnant at 8.2%.

(MORE: Canada to Ban Visas for Foreign Strippers)

The major reasons for Canada’s economic triumph over its neighbor to the south, it seems, are rooted in the 2008 recession that rocked the United States’ economy and collapsed its housing market. American house prices plunged, and now Canadian real estate holds more value. And that’s not even taking into account the recent spike in Justin Bieber-inspired tourism.

MORE: The Dumbest Way Ever to Get Your Identity Stolen

196 comments
MarkJamesHill
MarkJamesHill

http://www.huffingtonpost.ca/2012/12/01/canada-us-economy-gdp_n_2220164.html

if your Canadian just read the above article if you dont have time let me just point out how dependant you are to your southern neighbors your arrogant pricks. "73 per cent of Canada’s exports go to the U.S." do ya get that? and by the way your parade isn't lasting your on your way down ... again. Canada is just a big city You need to learn more respect for your big brother.

MarkJamesHill
MarkJamesHill

you cannot compare a country with over 300 million people with the largest GDP in the world with a large city like Canada which has a little over 10% of the population. Besides this will only last for a few years and then the Canadian Dollar will drop again. Americans do have too much debt and with all the refugees and poor immigrants I can see why. Nothing wrong with welcoming poor immigrants and refugees its what America- The USA was built on. Canadians have an identity crisis and always seem to be comparing themselves with America. It must be nice to have a very strong military just over the border so you dont have to spend mega bucks on it.

Noone of Consequence
Noone of Consequence

yeah, but they can only use their money to build houses and hotels on Boardwalk and Park Place...

Michael Bochenski
Michael Bochenski

Congratulation Canada! I shall now refer to you as America Senior and we will be America Junior ....well at least until we become  Central America.

KECanuck
KECanuck like.author.displayName 1 Like

WOW, talk about ignorance and complete lack of understanding from a lot of you americans that like to think you know everything, or worse yet have an uneducated opinion on things you haven't a clue about.

Canada is first a foremost a democracy. Our health care system is by far better than anything the good old USA has or more than likely will ever have. The one fact that remains is that your government hasn't been able to fix your system and more than likely never will be able to figure out a health care system that works for everyone in the USA. Your government is spineless and bows to the system that is controlled by the corporations, and health care providers.

I live in British Columbia, and I pay less than $70 dollars a month for health care for myself. That $70 dollars provides me with almost all my health care coverage, especially major medical like cancer treatment, surgery, xrays, lab tests, visits to the doctor, the list goes on and on. We do pay some things like prescriptions and a few minor services, but if we get sick, we are taken care of without worrying about having a bill sent to us for hundreds of thousands of dollars. We do have extended care we can purchase, but a lot of  companies in Canada pay for this as a benefit to their employees.

As Far as being ahead of the USA and being personally richer on the whole than americans, big deal! I really don't care if I am perceived by you lot south of the border as richer or poorer than you. I live in the greatest country in the world!! I am fortunate to be born and rasied in Canada, I served my country in the military and have travelled the globe including the USA. I can tell you this, there is no place on earth that can compare to Canada.

So for all you americans that have no idea what your talking about when it comes to Canada, do everyone a favor, keep you uniformed and un-educated opinions to yourselves. The world as a whole already has a low enough opinion of you as a nation, don't make it any worse.

MarkJamesHill
MarkJamesHill

@KECanuck 

the thing is Americans dont care about 30 million people in Canada so please just have a Molsen and play some hockey

MarkJamesHill
MarkJamesHill

@KECanuck 

socialist not a democracy. you call a duck anything you want or a canuck but its still a duck

domallen2
domallen2

@KECanuck 

I'm a person who's been on the planet 51 years, born and raised in LA California, lived in Maine, Florida, and now Virginia, all I can say is I couldn't agree more.  Over the many years I've travelled Canada from B.C. to Nova Scotia and still do (pretty much limit myself to Ontario nowadays for convenience - I hate flying anymore), I hold to what I've said for many years we in the US really have nothing on Canada, in fact we could learn a lot if we could manage to check our ego's at the door every now and then.  Canada is indeed a country that embraces self reliance and by enlarge the people I've met have a much, much greater understanding of economics and what the role of government should be than the average person in the US (that is obviously part of our problem).  For the record I have quite a few hundred thousand invested in Canadian companies over many years REITs, royalty trusts, income trusts, income funds, publicly traded corps, etc.  My only regret is I didn't go in even heavier years ago.  The USA has become the land of corruption, crony capitalism, favoritism, vote buying by both bribery & threat.  bureaucracy & absurd regulation ever increasingly hamper productivity.  When I think of my country anymore more I wonder if we'll eventually get ourselves to the point where doing even the simplest fundamentally important thing will become virtually impossible or just "not worth the pain incurred to do it.  When I think of Canada I just think of the first 3 letters, they say it all, CAN, a country of people who can do things. 

MarkJamesHill
MarkJamesHill

@domallen2 

you should move there we dont need you- The US is the population of the European Union and Canada the size of the Tokyo population how on Earth can anyone compare the two on any level

Michael
Michael like.author.displayName 1 Like

As a Canadian who studied economics and who's lived in the U.S. for half his adult life, perhaps I can lend some perspective. I also founded Parallel-49, a company that Canadianizes American advertising. Forgive the plug, but it goes to credibility. 

The article's headline is based on net worth (assets), and the Canadian housing bubble hasn't popped yet. The U.S. still leads the world in annual income. See the recently published Wall St. Journal rankings, which also show near-perfect correlation between free markets (capitalism) and income, which benefits rich and poor alike. 

True, to call Canada (or Sweden) socialist is incorrect in the absolute, yet correct in relative terms. Those countries are more socialist, but the U.S. is doing its best to catch up.

Monopolies exist only where government gives them the power. The closer one gets to a monopoly system, the more consumers get hurt. Canada has duopoly in airlines, and oligopoly in mobile phones and banking. Not coincidentally, Canadians pay ludicrous prices / fees for these things.

MarkJamesHill
MarkJamesHill

@Michael 

to understad why the US wil never be Socialist one only has to look at our brief history.

garydpdx
garydpdx

While air travel could do with a little more competition, even the WSJ has pointed out that differences include a) Canadian fees cover intended costs but not those of the US (e.g., the TSA security fees cover barely a third of screening costs), b) Canadian airports are privatized and most are new/renovated (okay, so the rent is too darn high), while c) nearly every US airport is public, with subsidies from federal, state and local governments.  Of course, get beyond the title of this article ...

http://online.wsj.com/article/...

So, unfortunately, a consequence of better flight prices in the US can be seen on the National Debt Clock across from the New York City Public Library.

Also, in mobile phones, consider the struggling, 4th place player ... T-Mobile USA ... its subscriber base is 33 Million ... pretty well equal to the population of Canada!  Mobile price points are actually similar, but you get less in Canada (e.g., local not national plan, no callerID, no voicemail - all extra). As for oligopoly, every country is such ... otherwise, can I get a US domestic plan from Orange, Telsim or NTT Docomo?

Don Ho
Don Ho like.author.displayName 1 Like

Yes but we the U.S. have more bombs and guns. That's how we like to spend our resources.

MarkJamesHill
MarkJamesHill

@Don Ho 

and Canada and the rest of the world benefits from relative world security. having a strong military neighbor is a benefit Canadians don't pay us for- they should. besides the controversial issues like Iraq. 

truongvoky
truongvoky

Thanks to Obama importing millions of illegal immigrants so Social security, Welfare , unemployment  will be fully paid while the jobs available are worth to work than to stay home and get paid.

zzz05
zzz05

In other new:

"Average citizen of Roman Empire no longer wealthiest in world"

zzz05
zzz05

But they have gun control, so all we have to do is go up there and take it all. 

stevecarington2012
stevecarington2012

 One thing that keeps coming up in reading on American history, is the

participation of blacks and Hispanics in Communist parties of the

1940s-1960s. And the KKK used to inveigh against "Marxist n***ers" and

so forth. I'm curious how much of our anxiety over socialism, is from

the Red Scares of the 20s and 50s, and how much was from Southern

segregationists. Obama is a fusion of such fears: a black man of the

"Left" (even though he is nowhere close to what Greens or Socialists

hope for).@LoudRambler:disqus  what Edward replied I

didn't even know that some people can get paid $4007 in 1 month on the computer.

did you see this website  http://easygreennow.blogspot.c...

Richard Rhoda
Richard Rhoda

You confuse "median" with "average".  The US "average" net worth is higher than Canada's.  "Median Net Worth" Canada - $89,014; USA - $52,752. "Average Net Worth: Canada - $245,455; USA - $248,395. www.financemy money.com. Obviously, wealth is

far more concentrated in the USA.

Richard Rhoda
Richard Rhoda

You are confusing "average" with "median."   They differences can be enormous. I though journalists were better.   The ultra rich in the USA push the "average in the USA  above the "average" in Canada.   Canada and US net worth data:

 

RichardSRussell
RichardSRussell

Is that MEAN household income or MEDIAN? It may well be that the US continues to be richer than Canada in gross terms, but that most of the money is tied up by the super-rich, whereas in Canada it's spread around more evenly.

zzz05
zzz05

Exactly. Median doesn't tell you if the richest people have median +$1 as income, or $1,000,000,000. 

On the other hand, if you are talking about what most people make, then in this case (where the center of gravity of salaries is skewed away from center, since nobody makes less than $0) median is a much better indicator of what "average" salary would be than mean, which gets pulled way far from the "center of gravity" by the occasional outlier on the high side, but there are no outliers on the low side.

And of course, for total wealth, you need mean times number of people, not median. I shouldn't have to say that, but a widely-quoted-in-Canada right wing Canadian study "proving" that Canadian salaries are higher in the public sector than private industry makes that fundamental mistake, and it doesn't seem to stop Canadian rightwingers from quoting it. 

Ricardo Bocaz Bocaz
Ricardo Bocaz Bocaz

Wrong!!!!   Canadians ARE Americans. They share the same continent as many other countries...like USA.

RichardSRussell
RichardSRussell

You think Canadians are Americans? Ask one and learn.

zzz05
zzz05

Not Canadians' or Mexicans' fault that the USA picked a name which prevents formation of any kind of word to describe its citizens. United Statesians? 

Delors
Delors

To be "socialist" means that the goverment and state priorities MUST be focused on people, not on corporations. The dictionary has to be reviewed also...many words are "much too far" from the actual meaning... Way to go Canadians...!!!

MarkJamesHill
MarkJamesHill

@Delors 

socialism is the next step to communism 

Agarbeau
Agarbeau

Canada does not have despots who piss away trillions on losers all over the third world or the GOP that blocks every attempt to get this country rolling again.

gprovida
gprovida

Wait wait, "socialist" Canada with high tax rates, gun control, universal health care, ... gee maybe we can get a clue.

Marc Schluper
Marc Schluper

This is not a fair comparison. The Canadians don't fight wars all the time, like we do, so they save a lot of money. They also have no filthy rich people who park the money they extracted out of our economy in secret foreign bank accounts. Moreover, they have very cost-effective universal health care.

If we had all that, and a Congress that was not corrupt, we'd still beat them!

Don_Randall
Don_Randall

Except for the Canadian health-care system, I would hardly refer to Canada as a socialist country. In fact, Canada is becoming increasingly capitalistic and our social programs are rapidly deteriorating. In regards to Canadians becoming wealthier, that simply isn't the case. Back in 1967 the distribution of wealth in both the U.S. and Canada was at its peak. Since that time gentrification, poverty and homelessness have increased in both the U.S. and Canada. Moreover, the decline in housing prices in the U.S. could make housing more affordable for Americans. In Canada housing prices are absolutely ridiculous for average people.

MarkJamesHill
MarkJamesHill

@Don_Randall 

housing prices are already rising as inflation rises and mortgage rates drop.

matuzelatogo
matuzelatogo

It is about time americans learnt from the Canadian Experience and established a Universal Health Care System for all because they have become a more sympatising Nation and I am not really surprised that They are now more wealthy than Americans.

Right here in Ghana the Rate of the Canadian Dollar is quite low even By Western Standards for I bought 20 Canadian Dollars for40 Ghana Cedis that is quite cheap and moreover I do not know the rate in Ottawa and in Toronto Canada.

So cheerios and hoping to migrate to Canada in the Year 2013.

By the way Americans will please stop lambasting your Canadian Neighbours they have great potential Skills in the Telecom and Information Communications Sector for   your Information.

Yep the Canadian Dollar like no other Currency even ousting the Euro and the British Pound Sterlings.

If America is the wealthiest Country on Earth then it is a shame that it can have the political will to ensure all its residents have access to Adequate Health Insurance to all its residents when even Less Wealthier Countries are doing the favour for their residents and their Citizens.

Allah Wetin Americans better wake up for the Mightiness and Elevation of their Country for it seems she is falling in the Indicators of the Rankings in so many areas of Human Endeavour.

Math and  Science Results from the United States are falling behing Europe The Middle East Asia and Africa and American High School and University Students have better to improve their Score Skills.

Yours Computerly James Bedu Kodjo Graham.

MarkJamesHill
MarkJamesHill

@matuzelatogo 

your delusional- look at the demographics of the US compared to Canada- The Us is like 50 different countries. over 300 million people- Canada 34 million- only ignorant people would compare the 2

wootendw
wootendw like.author.displayName 1 Like

Canada ought to be the richest nation on earth by far.  It has vast land and natural resources split up amongst a mere 35m people.  And it has a huge trading partner directly to its south.  That the average Canadian isn't several times wealthier than the average American suggests that it is very poorly governed or over-governed.

MarkJamesHill
MarkJamesHill

@wootendw 

I agree- its because its socialist

zzz05
zzz05

Or it could mean that it hasn't squandered its resources in the search for immediate wealth.

manroj1
manroj1

Yeah, they don't spend as much on unnecessary health care or unnecessary wars.

MarkJamesHill
MarkJamesHill

@manroj1 

Canadians are cowards- they should step up and stand up for other peoples in the world especially when genocide is rampant. They would rather play hockey and drink beer.

duif100
duif100 like.author.displayName 1 Like

It would have been nice if that had happened because of a booming Canadian economy.

It is sad that it happened because Obama destroyed 40% of America's wealth and is still destroying more.

It is the same as winning the game because the other team fortfeited the game.

You did not win the game but you get credit for the win.

It only emphasises how bad Obama is for America!

zzz05
zzz05

"Obama destroyed 40% of America's wealth "

I know! Same as credit card companies destroyed 50% of my family's wealth last year, by making me pay the bill for the crap I bought on credit when Bush was president!

MarkJamesHill
MarkJamesHill

@zzz05 

Im sorry Bush made you be irresponsible with your credit card purchases?

Michael
Michael like.author.displayName 1 Like

Was Bush at the cash register signing the credit card slips for you? If not, then take responsibility for your own actions. Oh, and I'm not a Bush supporter. 

GimmeAnotherTacoWillYaPlease
GimmeAnotherTacoWillYaPlease

Come on, stop this nonsense once and for all. Canada is not socialist and never has been- end the silly inaccurate stereo types and the foolish comparisons to Europe.

Canada is sturdy, sober and CONSERVATIVE  on financial and fiscal matters. It's that simple and it works.

MarkJamesHill
MarkJamesHill

@GimmeAnotherTacoWillYaPlease 

your delusional comparitively (minus your Canadian brain washing) it is by far socialist politically

Firozali A.Mulla
Firozali A.Mulla

The

Barclay scandal has rocked the cash that we now look at this repeatedly. US

Treasury Secretary Tim Geithner has warned that reform of libor will not be

left "completely to the British" because their earlier efforts did

not solve the problem. The blunt warning came just hours after Sir Mervyn King,

the Governor of the Bank of England, invited the heads of the world's central

banks to a dinner in September to discuss reforming Libor.More than a dozen of

the world's biggest banks are under investigation for allegedly trying to

manipulate Libor, an interest rate that is used as the basis for more than

200trillion pounds in loans. You cannot compare Canada with UK or US. Well, if you say IGNORE, why? We need to

dig deeper Human has always been curious and went to moon to find water,

nothing. Tried many space shuttle, came back with sand that is now is museum

and you pay to see this. Is this to cover the cost of the ride to moon? Say we

are stingy in our daily lives. Elite looks down on poor to keep them poor. Is

that the economy? BRIC was tops now China is looking deeply into her cash flow

as India .I think there is the problem with Canada too. Remember long time we

used to say, economy in Canada is great but the politics is lousy. Times do

change but the economy all over the world is sitting on one thing. HOLD ON

someone is doing something. The problem with us is, we have no honest leaders.

Name one. Can you? I thank you Firozali A.Mulla DBA

 

Firozali A.Mulla
Firozali A.Mulla

What I love is, there is a report or the study says.

Is there no validity in these studies? Why the reports come, as “Subject to” That

exactly is the study says like the Readers Digest once wrote, (“They say, but

never know who?) International Business Machines (IBM: 188.25,

+4.60, +2.50%) revealed quarterly profits and a full-year outlook that bested

Wall Street's expectations. However, the blue-chip tech company's sales came in

shy of forecasts. The Armonk, New York-based Company posted a

second-quarter net income of $3.9 billion, up 6% from the same three months in

2011. Excluding charges, IBM's EPS was $3.51, stronger than the $3.42 the

Street expected. Revenues came in at $25.8 billion, shy of the $26.27 billion

Wall Street was looking for. A stronger dollar, which reduces the value of

international sales, lobbed roughly $1 billion off the company's top-line

number. Sales across IBM's software division rose 4%, adjusting for

currency, while revenues in the hardware division slumped 7% on the same basis.

However, IBM made up for the weakness in revenues by boosting its total

operating margin, a key profitability metric, to 48.2% from 46.8% in the same

quarter in 2011. IBM President and Chief Executive Officer Ginni Rometty

said in a release accompanying the report that the performance "reflects

continued strength in our growth initiatives and investments in higher value

opportunities." Rometty added that "looking ahead, we are well

positioned to deliver greater value to a wider range of clients and to our

shareholders.." There’s a study out there that says the net worth of

Canadians is now higher than that of Americans. The study is

impenetrably absurd, and so are the pundits touting it. The study from

Environics Analytics of Toronto says the average Canadian household had a net

worth of $363,202 at the end of last year, versus $319,970 for the average

American household. The average Canadian household now looks to be more than

$44,000 richer than the average American household, the study says. Set aside

the oversights, including that it appears the study uses U.S. government

statistics that leave out Americans’ massive 401(k) accounts, as Americans are

not required to report these retirement accounts on tax returns. The study

attempted to use estimates here, but the disclosures are poor. Similar, too, is

the fact that the study ignores Canada’s microscopic defence spending, which

amounts to a fraction of the U.S. military budget. For decades, Canada has

relied on the U.S. for its own defence and protection, and instead blows its

money on a flawed single-payer health system that is growing more expensive and

whose long wait times for exams and doctor or hospital visits has Canadians

flying down to the U.S. for health care. Does Obama or Romney Have a Better Vision for America’s Future? What

I like about this is the repeat   of the

news. All are trying to gain time for the next 4 year. All say I do not know

…smile(the lady is smiling while my net is revolving  reload..   .. and people do not want to say no to Obama

but if the public cane get something in change on $250,000 tax, increase or

increase suspending lowering The Barclay scandal has rocked the cash

that we now look at this repeatedly. US Treasury Secretary Tim Geithner has

warned that reform of libor will not be left "completely to the

British" because their earlier efforts did not solve the problem. The

blunt warning came just hours after Sir Mervyn King, the Governor of the Bank

of England, invited the heads of the world's central banks to a dinner in

September to discuss reforming Libor.More than a dozen of the world's biggest

banks are under investigation for allegedly trying to manipulate Libor, an

interest rate that is used as the basis for more than 200trillion pounds in

loans. You cannot compare Canada with UK or US. Well,

if you say IGNORE, why? We need to dig deeper Human has always been curious and

went to moon to find water, nothing. Tried many space shuttle, came back with

sand that is now is museum and you pay to see this. Is this to cover the cost

of the ride to moon? Say we are stingy in our daily lives. Elite looks down on

poor to keep them poor. Is that the economy? BRIC was tops now China is looking

deeply into her cash flow as India .I think there is the problem with Canada

too. Remember long time we used to say, economy in Canada is great but the

politics is lousy. Times do change but the economy all over the world is

sitting on one thing. HOLD ON someone is doing something. The problem with us

is, we have no honest leaders. Name one. Can you? I thank you Firozali A.Mulla

DBA

garydpdx
garydpdx

This would surprise most Canadians since the US is seen as a destination for high value jobs. But the flip side is that 25% of the US work force is considered 'low wage' while that's just above 20% for Canada (and also the UK). Add to that increased inequality (while Canada has the highest rate of growth in inequality, it would take over a decade to reach present US levels), reduced social mobility (mostly from an increase in downward mobility as well as slowed upward mobility - Pew Social Mobility Project) and discovery of more damage from the Great Recession than previously thought (e.g., NAR revising down house sales figures from the last three years). Canada's mid-paced midwestern-style economy has traditionally been viewed as the tortoise versus the American hare, but the tortoise looks good when the hare stumbles. 

 

BTW for unemployment figures, the Bureau of Labor Statistics re-crunches other countries' data using its own formula and for Canada, its BLS unemployment would be

6.3%! 

 

The parts of the US economy that are working, are working very, very, very well. The problem is that a big chunk of it is still offline.