The New York Times, April 30
This is a rough summary of the main points.
1. Median income in Canada appears to have surpassed median income in the United States, based on three decades of international income surveys. As recently as 2000, median income in the U.S. was significantly higher.
2. Lower income families in Canada and much of Northern Europe make more than their American counterparts.
3. Members of the Canadian middle class prefer the situation on their side of the border.
4. Canadians have little doubt that they face less financial stress about medical costs than Americans.
5. Many also credit their labour unions for the size of their paycheques.
6. Canadians know that the American housing bubble and burst was more severe than their version.
7. Canadians notice cultural differences that seem to affect living standards. About 60% of American children live with two parents. About 80% of Canadian children do.
8. The American rich have a big lead over the Canadian rich.
For what it is worth, I share with Eric’s Blog readers my take on the NYTimes research, shared with a number of Economic Blogs last week:
1. Canada still could be doing much better if we were less aggressive on tax cuts and invested more in infrastructure;
2. The loss of U.S. government revenue through transfer pricing to tax havens is crippling the U.S. public sector and starving public sector infrastructure. (Capital loss is in the Trillions. Estimates for loss of all tax paying developed countries as high as $14 Trillion.)
3. Short sighted, often mean spirited withdrawal of public services to those Americans in need are robbing the American Middle Class of its future.
4. U.S. demand for immigration to Canada, already at near record highs, will increase further.
5. Canada is strengthened by its inflow of immigrants and foreign students. We must remain receptive even during times of high unemployment. Immigrants are innovators, entrepreneurs, and create jobs for Canada. Investment comes with the flow of talent.