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Over the past five years, the net worth of the average Canadian has crept up, overtaking the average American’s wealth for the first time. These days, Canadian households are about $40,000 richer than American ones.
What's behind the economic success of the Great White North? It’s not necessarily that Canadians are more industrious and thrifty than their neighbors to the south. The 2008 economic crisis wreaked havoc on the U.S. housing market, sending real estate values plunging. So, Canadians’ houses are worth about $140,000 more than Americans. Canadians also own about twice as much real estate as Americans, and have fewer mortgages.
On a national level, assets like the Alberta tar sands certainly help, but, Marche proposes, it was a policy of "hard-headed socialism" that allowed the banks and the housing market to stay stable and weather the global economic crisis.
The difference grows starker by the month: The Canadian system is working; the American system is not.
The truth is that both sides are right. Since the 1990s, Canada has pursued a hardheaded (even ruthless), fiscally conservative form of socialism. Its originator was Paul Martin, who was finance minister for most of the ’90s, and served a stint as prime minister from 2003 to 2006. Alone among finance ministers in the Group of Eight nations, he “resisted the siren call of deregulation,” in his words, and insisted that the banks tighten their loan-loss and reserve requirements. He also made a courageous decision not to allow Canadian banks to merge, even though their chief executives claimed they would never be globally competitive unless they did. The stability of Canadian banks and the concomitant stability in the housing market provide the clearest explanation for why Canadians are richer than Americans today.
Martin also slashed funding to social programs. He foresaw that crippling deficits imperiled Canada’s education and health- care systems, which even his Conservative predecessor, Brian Mulroney, described as a “sacred trust.” He cut corporate taxes, too. Growth is required to pay for social programs, and social programs that increase opportunity and social integration are the best way to ensure growth over the long term. Social programs and robust capitalism are not, as so many would have you believe, inherently opposed propositions. Both are required for meaningful national prosperity.
I think that means you want us to vote for the candidate who is most likely to do these things. OK, you've persuaded me. Romney it is, but only because you suggested him.
Martin also slashed funding to social programs. He foresaw that crippling deficits imperiled Canada’s education and health- care systems, which even his Conservative predecessor, Brian Mulroney, described as a “sacred trust.” He cut corporate taxes, too. Growth is required to pay for social programs, and social programs that increase opportunity and social integration are the best way to ensure growth over the long term.
This is where some of their extra money goes.
Consumer Prices in United States are 16.18% lower than in Canada
Consumer Prices Including Rent in United States are 14.09% lower than in Canada
Rent Prices in United States are 4.81% lower than in Canada
Restaurant Prices in United States are 18.11% lower than in Canada
Groceries Prices in United States are 19.20% lower than in Canada
Local Purchasing Power in United States is 10.15% higher than in Canada
The Canadian homeowner has $140,000 more wealth than an American home owner simply because of the different value of their homes.
The 2008 economic crisis wreaked havoc on the U.S. housing market, sending real estate values plunging. So, Canadians’ houses are worth about $140,000 more than Americans.
Buying a house remains a major long-term investment for most Canadians. In 2006, more than 2 out of 3 households owned their residence—the highest home ownership rate since 1971. Of the 12.4 million households in Canada, more than 8.5 million owned their home.
Originally posted by Tw0Sides
reply to post by Aloysius the Gaul
Those nasty Canucks, living in a Socialist country, with
Medicare for all.
That's it, we need a War with Canada because.......... (got it) , they have Nuclear Power , so therefore they have Nukes!!!!!!!!!!
Originally posted by charles1952
reply to post by Aloysius the Gaul
Dear Aloysius the Gaul,
Please forgive me, I must have made two mistakes. I think house value is essential to measuring average wealth. For most people their home is the largest piece of their wealth. I was trying to say that the decreases in American home prices were more than enough to account for the Canadians' $40,000 lead.
My mistake on the theory business. I remembered someone felt that socialism was the reason Canada was doing so well. I must have confused that person with you. Sorry.
Originally posted by MRuss
I spend a lot of time in Canada for work---mostly in Nova Scotia, Montreal and sometimes Toronto. Also New Brunswick, PEI, Niagara Falls.
And I've always said this---I'm not all that impressed with the way Canadians live. Housing is expensive, especially in places like Halifax, Montreal and Toronto, and the houses are just not that nice. Kind of dingy little places with big price tags.
The infrastructure in Cananda isn't all that impressive either, nor is the weather, the health care system, or the culture. Some places seem to lag behind in modernity. Try ordering a sandwich in Montreal if you can afford to.
I'm just not a big Canada fan as far as lifestyle goes. It's cold, expensive and not all that interesting.edit on 18-7-2012 by MRuss because: (no reason given)