FacebookTwitterRedditEmail

Make America … More Like Canada

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.

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.

More articles by:

Sam Pizzigati writes on inequality for the Institute for Policy Studies. His latest book:The Case for a Maximum Wage  (Polity). Among his other books on maldistributed income and wealth: The Rich Don’t Always Win: The Forgotten Triumph over Plutocracy that Created the American Middle Class, 1900-1970  (Seven Stories Press). 

bernie-the-sandernistas-cover-344x550
December 05, 2019
Colin Todhunter
Don’t Look, Don’t See: Time for Honest Media Reporting on Impacts of Pesticides
Nick Pemberton
Gen Z and Free Speech
Bob Lord
The U-Turn That Made America Staggeringly Unequal
Josh White
The Most Important Election in British History
Daniel Warner
The Hillsborough Soccer Tragedy: Who is Responsible?
Dean Baker
The Big Deal in Warren’s Prescription Drug Plan
George Ochenski
Another Utility Disaster Headed Our Way
Binoy Kampmark
Spying on Assange: the Spanish Case Takes a Turn
Victor Grossman
Big Rallies and Big Differences in Germany
L. Ali Khan
A Playboy Misrules Pakistan
William J. Astore
How American Exceptionalism is Killing the Planet
Susie Day
The Mad Activist Impeaches Western Culture
Andrés Castro
Look Out for the Drift
December 04, 2019
Jefferson Morley
RIP Fred Hampton: a Black Visionary Assassinated by the FBI
Vijay Prashad
Wealthy Countries’ Approach to Climate Change Condemns Hundreds of Millions of People to Suffer
Kenneth Surin
The Tory Election “Campaign” to Date
Maria Paez Victor
Indians Shall Not Govern
Peter Lackowski
Bolivia’s Five Hundred-Year Rebellion
Dave Lindorff
Billionaire Entitlement Run Amok: the Case of Michael Bloomberg
Doug Johnson Hatlem
Is Corbyn for Christmas Just Another Stove Pipe-Dream?
Howard Lisnoff
Elizabeth Warren: Savior of a Fallen System?
Robert Fisk
The Remembrance Poppy is Becoming a Weapon Against Immigrants to Canada
Dean Baker
NAFTA was About Redistributing Wealth Upwards
Richard Greeman
French Unions and Yellow Vests Converge, Launch General Strike
Binoy Kampmark
Legitimised Surveillance: Kim Dotcom’s Case Against GCSB
Walter Clemens
Goodbye Law and Morality, Welcome Pretend Tough!
Sam Pizzigati
Football Without Billionaires? Why Not?
Anthony Giattino
Royal Forests of America
December 03, 2019
Richard Lachmann
Can the US Get Out of Its Endless Wars?
Ramzy Baroud
Israel’s Unfinished ‘Coup’
David Rosen
The Dialectics of Postmodern Sexual Identity
Robert Fisk
Reporting Syria: I Talked to Everyone, Except Assad
Patrick Cockburn
Why the Resignation of Iraq’s Prime Minister May Not Stop the Mass Uprising on the Horizon
Norman Solomon
For Corporate Media, It’s ‘Anybody But Sanders or Warren’
Bob Scofield
Uruguay Turns to the Right
Joe Emersberger
Talking About Ecuador’s Political Prisoners: an Interview With Marcela Aguiñaga
Medea Benjamin
Trump Was Right: NATO Should Be Obsolete
Nyla Ali Khan
Lesson in Diplomacy for India’s Consul General Sandeep Chakravorty
William Gudal
The Bubble Machine
Gaither Stewart
Dirty Hands
Peter Certo
End the Wars, Win the Antiwar Vote
Binoy Kampmark
The Liveris Formula: Dow’s Inclusive Capitalism
Dan Bacher
California Freezes New Fracking Permits – But All Oil Drilling Permits Still Outpace 2018
Kay Sather
Can’t Get No Satisfaction?
December 02, 2019
Rob Urie
Ukraine, the New Cold War and the Politics of Impeachment
FacebookTwitterRedditEmail