When I was a boy, the Cannuck currency was 2/3 that of America’s. I remembered the ratio by comparing it to the ratio of kilometers to miles. And though it was still cool to have Canadian coins (money was still money and good for candy!), I know the storekeepers in my hometown preferred the American version.
Today things are different. The Canadian dollar has been as strong as the U.S. dollar for a few years now. And now I come across this article on TheWeek.com that shows Canadians enjoying a higher level of wealth than their American counterparts for the first time in any recorded history. Wha?
Yes, the average household net worth in Canada is $363,202
In the U.S. it’s $319,970 :(
So, why is this?
Is it us or them?
A few theories are brought up on the site; I’ll offer them briefly:
1. Though more socialist with health care and financial regulation, Canada also spends way less, has lower debt, and made significant social cuts in the 90′s. They seem to walk a completely different fiscal line than the U.S. does.
2. The easiest answer for the new discrepancy is the housing bust. Many Americans lost their shirts while Canadians did not:
3. Canada’s banking system plays is safer.
4. Canada’s new found wealth via their rich natural mineral and oil resources.
The article played a nice role of talking up Canada (their unemployment is also 1 point better than America’s), and that’s great. But one assumes that this new reality is more of a case of America falling.
It’s those reasons, I think, that need to be brought up.
to new plateaus,