For the first time, Canada’s middle class is doing better than the middle class in the U. S., the Luxemburg Income study shows. The average income in Canada rose 20% between 2000 and 2010 to $18,700 a year, while the average income in the U.S. stayed flat. The study proves the middle class demise in the U.S.
Since 2010, Canadian incomes have increased because Canadian salaries are rising faster than Americans. Bigger pay checks aren’t the only benefit that the Canadian middle class enjoys. Its members pay a lot less for some stuff that drives Americans into debt. The average tuition at Canada’s top universities, such as Queens, McGill, and Dalhouse, is around $6,500 a year. A year’s tuition at Princeton is around $40,000 annually.
Canada’s national healthcare system covers most medical expenses. It also pays for home nursing care, transportation to doctors appointments and a variety of other related expenses. Canadians don’t have to shell out hundreds of dollars a month for health insurance. By eliminating those expenses, Canada effectively increases citizens’ incomes. Canadians still pay taxes, but they seem to get more back for those taxes.
There’s another reason why Canadians are making more money than Americans and they seem to be enjoying more economic freedom. “The Economic Freedom of North America” study conducted in 2013 found that residents of two Canadian provinces, Alberta and Saskatchewan, enjoyed more economic freedom than inhabitants of any U.S. state.
The study found the provinces had lower taxes, smaller governments, less government regulation, a freer labor market, lower inflation and less government regulation than any U.S. state. Two other Canadian provinces, Newfoundland and British Columbia, also made the list.The study also seemed to indicate that Canada is doing more for both business and average citizens than the United States.
Think of it this way. A business owner in Canada doesn’t have to worry about health insurance for employees. The government takes care of that. Business owners pay higher taxes, but don’t have to spend time and money shopping for health care insurance for employees or dealing with all the paperwork related to it. The U.S. has done the opposite with Obamacare.
So what should an average person in search of economic opportunity do? The answer is live where you are able to for the right job or financial opportunity. Most financially successful people create their own economic opportunities. It can be difficult and a lot of hard work, but driven individuals can succeed and make money anywhere. The willingness to adapt to an environment and take advantage of opportunities is more important than your location or the flag flying over your post office.