For the first time in recent history, Canadians are richer than Americans. Some fresh facts and figures are causing a plethora of comparisons between citizens of Canada and the United States. And not only do we have a higher household worth than our neighbour to the south, but we also have lower rates of unemployment. That’s something to celebrate.
According to data from Environics Analytics WealthScapes, the 2011 mean net worth of Canadian households exceeded that of the average American one. On average, Canadian households were found to have a worth of $363, 202. American households have an average net worth of $319,970. These numbers were first published in The Globe and Mail and have been spreading like wild fire ever since. Your typical Canadian might not feel richer than anyone, but the figures do not lie.
Another set of figures are just as interesting, as Canada and the United States both announced their most recent job figures within the last couple of weeks. While the American unemployment rate is stagnant at 8.2 per cent, Canada’s number of jobless workers continues to go down. The rate is currently 7.2 per cent and, while that’s obviously still too high (especially if you’re one of those unemployed people), it’s a good sign that the numbers are consistently declining. More employed citizens means more income and higher net worths. It all ties together.
President of the Environics Institute and author Michael Adams, in a special column in The Globe and Mail, discusses some of the reasons Canadians are richer than Americans, and richer than they think. Firstly, our money is nearly on par with American dollars right now. So comparing these figures requires no adjustment to a weak Canadian dollar. Secondly, our resource sector is booming. Third, we are experiencing less brain drain than we were prior to the 2008 economic crisis.
But the main reason we are richer, according to Adams, is the housing crisis in the United States. The collapse of the American housing market led to a plunge in home prices and Canadian real estate is now much more highly valued than American real estate. “In fact, Canadians hold more than twice as much real estate as Americans and, once mortgages are factored in, have almost four times as much remaining equity in their real estate,” Adams writes. “Americans’ liquid (non-real estate) assets are still greater than Canadians’.”
Are you surprised that Canadian households are richer than American ones? Is your net worth on par with the average for Canadians? And what do you think about our 7.2 per cent unemployment rate?
http://blog.yourmoney.ca/2012/...-than-americans.html