Average Wealth of Canadians now greater than Americans... why?

[blankslate]

According to this newspaper link

http://www.theglobeandmail.com/commentary/canadians-are-richer-than-they-think/article4380634/

Canadians have more wealth than Americans. Of course it's a Canadian paper. I doubt it would get any prominent placement in an American paper.

But lurking behind the dire headlines about consumer debt and our creeping profligacy is a strange new reality: The average Canadian has quietly become richer than the average American. Over the past five years, net worth per Canadian household has exceeded net worth per American household (total combined value of liquid and real estate assets minus debt) for the first time.

Does this bother anyone? It bothers me.

urrently, the average Canadian household is more than $40,000 richer than the average American household. (According to the latest Environics Analytics WealthScapes data, the average household net worth in Canada was $363,202 in 2011; in the U.S. it was $319,970.)

And these are not 60-cent dollars, but Canadian dollars more or less at par with the U.S. greenback.

The article goes on to highlight some possible reasons for the new according to the paper unprecedented reality.

Do you agree with those reasons? I tend to. General Canadian cautiousness has also led them to regulate their banks more.

Coincidentally (or not) Canada has avoided the bank failures that other countries had to contend with. Few, if any, Canadian banks failed or needed a large bailout in Canada

There's also the fact that Canada had a better hold on their banks
http://www.century21.ca/tatiana.tis...Banks_Helped_It_Sidestep_The_Financial_Crisis

The International Monetary Fund (IMF) recently said that Canada is likely to be the first of the seven major industrialized democracies to return to surplus by 2015, and last month it became the first such country to raise interest rates since the world financial crisis began.

I've been looking for the IMF source for the above quote so far I haven't found it but I have found it pointed out in other blogs

http://www.atlanticbusinessmagazine.ca/columns/grandich-on-business/abmwhy-this-american-remains-bullish-on-canada%E2%80%99s-economy-and-currency/

it’s important to note that the International Monetary Fund (IMF) recently said that Canada is likely to be the first of the seven major industrialized democracies to return to a budgetary surplus status by 2015. It also continues to greatly outperform its neighbor to the south in GDP growth without any real signs of overheating.

http://businessdiagnosticsblog.com/small-business-financing/canada-economy-envy-of-the-world/

But it is recovering from the recession faster than others, and although its deficit is currently at a record high, the International Monetary Fund expects Canada to be the only one of the seven major industrialized democracies to return to surplus by 2015.

If and when I find the actual IMF link I'll append it to the bottom of this post.


There's plenty of blame to go around in the U.S. though.

How do we fix the situations that lead to Canada leading the U.S. in this category? Assuming that U.S. citizens would consider this an issue worthy of concern that is.

 

[Pr0d1gy]

If you're not bothered by it you should have rode the short bus to school.

The truth is America in under assault, an economic war is being waged against us and our leaders are more than willing to lose because they are getting filthy rich off of it, and they can just uproot their entire family and move on to the next great bastion of freedom....Canada or Brazil or some such nonsense. These people have zero respect for this country, the people who built it, and for the "pieces of paper" we all know as the Constitution and Declaration.

 

[Infohawk]

My hypotheses:

1) Higher natural resources to population ratio (similar to why Australia is doing well);
2) Smaller population means more efficient government much the time;
3) Fewer low-wage immigrants who are a burden on tax/welfare system.

 

[thraashman]

My hypotheses:

1) Higher natural resources to population ratio (similar to why Australia is doing well);
2) Smaller population means more efficient government much the time;
3) Fewer low-wage immigrants who are a burden on tax/welfare system.

More and and better regulation of the banking industry.
Less divided of a government (no subset of a major party specifically trying to tank the country)
Less conservative economic policies as they've been proven wrong.

 

[yllus]

90% of the reason is because we in Canada haven't suffered from a housing market crash - in fact, we're still climbing and are will into outrageous figures in Toronto and Vancouver.

 

[Pr0d1gy]

My hypotheses:

1) Higher natural resources to population ratio (similar to why Australia is doing well);
2) Smaller population means more efficient government much the time;
3) Fewer low-wage immigrants who are a burden on tax/welfare system.

#3 has also served to bring wages down all over the country, especially in the service/blue collar industries.

 

[Pr0d1gy]

90% of the reason is because we in Canada haven't suffered from a housing market crash - in fact, we're still climbing and are will into outrageous figures in Toronto and Vancouver.

For now.

Just go deregulate and see what happens. It's an open invitation for the bankers to steal from you, we know from experience.

 

[SandEagle]

affordable education and free healthcare frees them from debt (slavery). most don't appear to be fat or materialistic, like their American counterparts. they are a level headed species, these Canadians.

 

[Hayabusa Rider]

Maybe they don't spend as much money on crap they don't need like we do. If income is equivalent then they might be saving more.

 

[StinkyPinky]

Canada has a lot of natural resources and an efficient and well educated population. It is no surprise to see them doing so well. Australia is also in the same boat.

The US is also very partisan imo. Repubs/Democrats, 50 states...too many factions. And of course we have to show the world how big our dick is by spending a trillion on war toys every year.

 

[blankslate]

I believe that the better and more rigorous regulations on Canadian banks have kept them from imploding and being a drag on the Canadian economy.

Yes, housing prices could crash in the arguably overvalued areas in Canada.

However, since Canadian banks were probably kept from engaging in things like giving out "liar's loan" mortgages due to the aforementioned regulations. This hypothetical crash probably won't be as serious as the American housing market crash (if it happens).

As for the illegal workers in the U.S. Ask yourself who is hiring them. Then ask why we haven't cracked down on them so much so that it's not worth hiring undocumented workers in areas like construction other similar jobs.

*edit*

Just go deregulate and see what happens. It's an open invitation for the bankers to steal from you, we know from experience.

I agree.

Personally I think the banking differences between Canada and America is a larger reason than the question of illegal laborers although the latter is not a factor to be dismissed.

 

[MomentsofSanity]

My hypotheses:

1) Higher natural resources to population ratio (similar to why Australia is doing well);
2) Smaller population means more efficient government much the time;
3) Fewer low-wage immigrants who are a burden on tax/welfare system.

Except that immigrants make up about 20% of the population in Canada vs. about 12-13 in the US. perhaps the better question is why are those immigrants not poor burdens like they are in the US.

 

[Jaskalas]

Average Wealth of Canadians now greater than Americans... why?

This may be the result of our housing crash combined with our retarded response to 9/11. The past decade has been a rapid decline for the USA.

We haven't even reached bottom yet.

 

[Infohawk]

Except that immigrants make up about 20% of the population in Canada vs. about 12-13 in the US. perhaps the better question is why are those immigrants not poor burdens like they are in the US.

Not all immigrants have the same economic effects. Canada appears to have negligible immigration from latin america. Latin American immigrants in the US tend not to be educated or have high-wage employment that would pay enough in taxes to compensate for the services they use. Comparing a Chinese immigrant working in IT in Vancouver to a chicano car washer in the US is silly. Chinese immigrants in the US are doing fine too.

In 2010, Canada accepted 280,681 immigrants (permanent and temporary) of which 186,913 (67%) were Economic immigrants; 60,220 (22%) were Family class; 24,696 (9%) were Refugees; and 8,845 (2%) were Other.[12]

Economic immigrants are skilled / educated immigrants. You can assume that family class is family of economic immigrants for the most part.

Several families have recently been denied immigration to Canada because members of their family have an autism spectrum diagnosis and Citizenship and Immigration Canada felt the potential cost of care for those family members would place an excessive demand on health or social services.[14][15]

The immigration is simply of a different nature than the immigration of the US.

 

[blankslate]

This may be the result of our housing crash combined with our retarded response to 9/11. The past decade has been a rapid decline for the USA.

I don't disagree.

Did the differences in Canadian and American banking policy have an impact on the housing market crash though?

If there was a crash in housing prices in Canada would the stricter regulations on their banks make a difference?

I think that it would.

 

[mect]

Maybe they don't spend as much money on crap they don't need like we do. If income is equivalent then they might be saving more.

This. The issue brought up in the article says nothing about the relative economies of each country. The reason for this is that Americans spend more than they make. It wouldn't matter if the average American income was $1 million/year, if everyone is spending $1.1 million/year, then people are not ever going to accumulate wealth.

Granted, I do agree the housing market has had an influence due to the number of people underwater on their home loans.

 

[techs]

Maybe God just rewards countries with universal health care?

 

[Hayabusa Rider]

Maybe God just rewards countries with universal health care?

So much for atheism

 

[blankslate]

Maybe God just rewards countries with universal health care?

So much for atheism

Maybe by God he means TFSM or Cthulhu

 

[DucatiMonster696]

For now.

Just go deregulate and see what happens. It's an open invitation for the bankers to steal from you, we know from experience.

The fact that they are experiencing a rise in housing prices and a housing bubble which yullus said is apparent in some areas disproves your point that regulations prevent such issues.

Furthermore our bubble was formed over decades while deregulation only occurred recently and some would say some areas of the US are still priced well beyond any realistic pricing levels that would be indicated via demand vs supply of housing. In addition you can see the same effect of bubble in the student loan area which is dangerously increasing to out of control proportions as more and more people with warm bodies are given access to loans so that they can dig themselves into soul crushing debts at the behest of government policies.

 

[blankslate]

You can see the same effect in the student loan bubble which is dangerously increasing to out of control proportions as more and more people with warm bodies are given access to loans so that they can dig themselves into soul crushing debts.

Funny how we're practically the only first world country that requires students to take on "soul crushing" debts to gain access to higher education if they're not members of the lucky sperm club or one of those who are smart (and perhaps lucky) enough to get a scholarship.

 

[Pr0d1gy]

The fact that they are experiencing a rise in housing prices and a housing bubble which yullus said is apparent in some areas disproves your point that regulations prevent such issues.

Furthermore our bubble was formed over decades while deregulation only occurred recently and some would say some areas of the US are still priced well beyond any realistic pricing levels that would be indicated via demand vs supply of housing. In addition you can see the same effect of bubble in the student loan area which is dangerously increasing to out of control proportions as more and more people with warm bodies are given access to loans so that they can dig themselves into soul crushing debts at the behest of government policies.

Yeah, keep telling yourself that one, guy. They had regulation and their banks didn't take a shit all over the country. We didn't and this country is still struggling to crawl out of an economic depression 4 years later. It's pretty simple to figure out.

 

[DucatiMonster696]

Funny how we're practically the only first world country that requires students to take on "soul crushing" debts to gain access to higher education if they're not members of the lucky sperm club or one of those who are smart (and perhaps lucky) enough to get a scholarship.

That is because other nations ration out their public education system by applying higher academic standards to entrance exams so as that prevent it from being overloaded and dragged down into huge debt ridden piles of poo. They also aren't saddled down with strictly politically based polices that dramatically increase the pool of college students in artificial ways aka AA.

However what is more funny is that our system of higher education has worked wonderfully well in the past without the need for subsidization via student loans for anyone with just a warm pulse and the ability to sign their name.

 

[DucatiMonster696]

Yeah, keep telling yourself that one, guy. They had regulation and their banks didn't take a shit all over the country. We didn't and this country is still struggling to crawl out of an economic depression 4 years later. It's pretty simple to figure out.

Our lending institutions took a shit on us (which includes Fanny Mae and Freddie Mac) because we bailed them out and allowed them to walk away without them incurring any major hits for the sake of ensuring that the Federal Reserve members would not be out of a job.

 

[blankslate]

However what is more funny is that our system of higher education has worked wonderfully well in the past without the need for subsidization via student loans for anyone with just a warm pulse and the ability to sign their name.

In the past we also supported college education by making it cheap enough for someone to work through college and emerge from it largely debt free with just a part time job.

Sadly those days are gone.