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Toronto, Canada (Photo: Shutterstock)
We Americans tend not to pay much attention to our northern neighbors. Often, entire election cycles can come and go without anyone running for national office saying anything about Canada.
But that's changing.
Canada now looms much larger in our politics, mainly because Canadians enjoy a health care system far superior to our own. Canada's single-payer approach to health care has become--for many Americans--a guiding inspiration.
We need what Canadians have--in more ways than one. An innovative new report from the Canadian Centre for the Study of Living Standards finds that Canadians now enjoy higher incomes than their counterparts in the United States as well.
The new report challenges conventional economic wisdom on household well-being.
That wisdom, notes report author Simon Lapointe, typically defines well-being as "GDP per capita." To calculate this yardstick, economists take the sum total of the goods and services a nation produces, divide that by the nation's population, and tell us the resulting number measures how well a nation's people are doing.
By this conventional measure, Americans are doing much better than Canadians. In 2016, the latest year with comparable stats available, GDP per capita in the United States ran over 20 percent higher than GDP in Canada, $57,798 to $47,294.
But GDP per capita can obscure reality as most households live it, especially in a deeply unequal society like the United States. American households certainly do rate as richer than Canadian on average. But "much greater incomes at the top of the income distribution" in the United States, explains the study, are inflating that average.
To remedy this statistical distortion, Lapointe divided the Canadian and U.S. populations "into 100 equal sized groups, ordered from lowest to highest income," then compared the actual income for each "percentile" group.
Well over half of Canadian households--56 percent--turn out to be "better off than American households at the same point in the income distribution."
The result? Well over half of Canadian households--56 percent--turn out to be "better off than American households at the same point in the income distribution."
At the 20th percentile, for instance, Canadian households pocketed $27,201 in 2016, some $3,786 more than the comparable U.S. household. At the 40th percentile, Canadian households made $1,871 more than similarly situated American households.
Rich American households, on the other hand, make much more than rich Canadian households. At the 100th percentile -- the top 1 percent -- U.S. households collected $711,801 in 2016, a stunning 57 percent more than Canadian top 1 percent households.
Lapointe would be the first to admit that his new research on comparative Canadian-U.S. household well-being has some significant limitations. His numbers, he acknowledges, only trace "money incomes before tax" and do not factor in "major government transfers in kind--public education, publicly funded health care, and publicly supported housing."
What would happen if we did factor in these transfers? The lives average Canadians lead would appear even more economically secure, since Canadians today get much more substantial "transfers in kind" from their government than Americans do.
Higher taxes do, to be sure, accompany Canada's more generous social benefits--but the rich in Canada pay taxes at higher rates than the rich in the United States. This would leave ordinary Canadians even further ahead of their American counterparts.
Let's hope we hear a good bit more about Canada in the 2020 election campaign. We Americans have a lot to learn about how much more decent life in North America can be.
Dear Common Dreams reader, It’s been nearly 30 years since I co-founded Common Dreams with my late wife, Lina Newhouser. We had the radical notion that journalism should serve the public good, not corporate profits. It was clear to us from the outset what it would take to build such a project. No paid advertisements. No corporate sponsors. No millionaire publisher telling us what to think or do. Many people said we wouldn't last a year, but we proved those doubters wrong. Together with a tremendous team of journalists and dedicated staff, we built an independent media outlet free from the constraints of profits and corporate control. Our mission has always been simple: To inform. To inspire. To ignite change for the common good. Building Common Dreams was not easy. Our survival was never guaranteed. When you take on the most powerful forces—Wall Street greed, fossil fuel industry destruction, Big Tech lobbyists, and uber-rich oligarchs who have spent billions upon billions rigging the economy and democracy in their favor—the only bulwark you have is supporters who believe in your work. But here’s the urgent message from me today. It's never been this bad out there. And it's never been this hard to keep us going. At the very moment Common Dreams is most needed, the threats we face are intensifying. We need your support now more than ever. We don't accept corporate advertising and never will. We don't have a paywall because we don't think people should be blocked from critical news based on their ability to pay. Everything we do is funded by the donations of readers like you. When everyone does the little they can afford, we are strong. But if that support retreats or dries up, so do we. Will you donate now to make sure Common Dreams not only survives but thrives? —Craig Brown, Co-founder |
We Americans tend not to pay much attention to our northern neighbors. Often, entire election cycles can come and go without anyone running for national office saying anything about Canada.
But that's changing.
Canada now looms much larger in our politics, mainly because Canadians enjoy a health care system far superior to our own. Canada's single-payer approach to health care has become--for many Americans--a guiding inspiration.
We need what Canadians have--in more ways than one. An innovative new report from the Canadian Centre for the Study of Living Standards finds that Canadians now enjoy higher incomes than their counterparts in the United States as well.
The new report challenges conventional economic wisdom on household well-being.
That wisdom, notes report author Simon Lapointe, typically defines well-being as "GDP per capita." To calculate this yardstick, economists take the sum total of the goods and services a nation produces, divide that by the nation's population, and tell us the resulting number measures how well a nation's people are doing.
By this conventional measure, Americans are doing much better than Canadians. In 2016, the latest year with comparable stats available, GDP per capita in the United States ran over 20 percent higher than GDP in Canada, $57,798 to $47,294.
But GDP per capita can obscure reality as most households live it, especially in a deeply unequal society like the United States. American households certainly do rate as richer than Canadian on average. But "much greater incomes at the top of the income distribution" in the United States, explains the study, are inflating that average.
To remedy this statistical distortion, Lapointe divided the Canadian and U.S. populations "into 100 equal sized groups, ordered from lowest to highest income," then compared the actual income for each "percentile" group.
Well over half of Canadian households--56 percent--turn out to be "better off than American households at the same point in the income distribution."
The result? Well over half of Canadian households--56 percent--turn out to be "better off than American households at the same point in the income distribution."
At the 20th percentile, for instance, Canadian households pocketed $27,201 in 2016, some $3,786 more than the comparable U.S. household. At the 40th percentile, Canadian households made $1,871 more than similarly situated American households.
Rich American households, on the other hand, make much more than rich Canadian households. At the 100th percentile -- the top 1 percent -- U.S. households collected $711,801 in 2016, a stunning 57 percent more than Canadian top 1 percent households.
Lapointe would be the first to admit that his new research on comparative Canadian-U.S. household well-being has some significant limitations. His numbers, he acknowledges, only trace "money incomes before tax" and do not factor in "major government transfers in kind--public education, publicly funded health care, and publicly supported housing."
What would happen if we did factor in these transfers? The lives average Canadians lead would appear even more economically secure, since Canadians today get much more substantial "transfers in kind" from their government than Americans do.
Higher taxes do, to be sure, accompany Canada's more generous social benefits--but the rich in Canada pay taxes at higher rates than the rich in the United States. This would leave ordinary Canadians even further ahead of their American counterparts.
Let's hope we hear a good bit more about Canada in the 2020 election campaign. We Americans have a lot to learn about how much more decent life in North America can be.
We Americans tend not to pay much attention to our northern neighbors. Often, entire election cycles can come and go without anyone running for national office saying anything about Canada.
But that's changing.
Canada now looms much larger in our politics, mainly because Canadians enjoy a health care system far superior to our own. Canada's single-payer approach to health care has become--for many Americans--a guiding inspiration.
We need what Canadians have--in more ways than one. An innovative new report from the Canadian Centre for the Study of Living Standards finds that Canadians now enjoy higher incomes than their counterparts in the United States as well.
The new report challenges conventional economic wisdom on household well-being.
That wisdom, notes report author Simon Lapointe, typically defines well-being as "GDP per capita." To calculate this yardstick, economists take the sum total of the goods and services a nation produces, divide that by the nation's population, and tell us the resulting number measures how well a nation's people are doing.
By this conventional measure, Americans are doing much better than Canadians. In 2016, the latest year with comparable stats available, GDP per capita in the United States ran over 20 percent higher than GDP in Canada, $57,798 to $47,294.
But GDP per capita can obscure reality as most households live it, especially in a deeply unequal society like the United States. American households certainly do rate as richer than Canadian on average. But "much greater incomes at the top of the income distribution" in the United States, explains the study, are inflating that average.
To remedy this statistical distortion, Lapointe divided the Canadian and U.S. populations "into 100 equal sized groups, ordered from lowest to highest income," then compared the actual income for each "percentile" group.
Well over half of Canadian households--56 percent--turn out to be "better off than American households at the same point in the income distribution."
The result? Well over half of Canadian households--56 percent--turn out to be "better off than American households at the same point in the income distribution."
At the 20th percentile, for instance, Canadian households pocketed $27,201 in 2016, some $3,786 more than the comparable U.S. household. At the 40th percentile, Canadian households made $1,871 more than similarly situated American households.
Rich American households, on the other hand, make much more than rich Canadian households. At the 100th percentile -- the top 1 percent -- U.S. households collected $711,801 in 2016, a stunning 57 percent more than Canadian top 1 percent households.
Lapointe would be the first to admit that his new research on comparative Canadian-U.S. household well-being has some significant limitations. His numbers, he acknowledges, only trace "money incomes before tax" and do not factor in "major government transfers in kind--public education, publicly funded health care, and publicly supported housing."
What would happen if we did factor in these transfers? The lives average Canadians lead would appear even more economically secure, since Canadians today get much more substantial "transfers in kind" from their government than Americans do.
Higher taxes do, to be sure, accompany Canada's more generous social benefits--but the rich in Canada pay taxes at higher rates than the rich in the United States. This would leave ordinary Canadians even further ahead of their American counterparts.
Let's hope we hear a good bit more about Canada in the 2020 election campaign. We Americans have a lot to learn about how much more decent life in North America can be.