Average Canadians Households Now Worth More than Average U.S. Households
Mark this down as an accomplishment no one every expected to see happen under any U.S. President.
Congratulations to the Obama Administration, you officially suck.
While Americans might enjoy throwing politically-charged barbs at their neighbors to the north, Canadians now have at least one reason to be smug.
For the first time in recent history, the average Canadian is richer than the average American, according to a report cited in Toronto’s Globe and Mail.
And not just by a little. Currently, the average Canadian household is more than $40,000 richer than the average American household. The net worth of the average Canadian household in 2011 was $363,202, compared to around $320,000 for Americans.
If you’re thinking the Canadian advantage must be due to exchange rates, think again. The Canadian dollar has actually caught up to the U.S. dollar in recent years.
“These are not 60-cent dollars, but Canadian dollars more or less at par with the U.S. greenback,” Globe and Mail’s Michael Adams writes.
To add insult to injury, not only are Canadians comparatively better-off than Americans, they’re also more likely to be employed. The unemployment rate is 7.2 percent—and dropping—in Canada, while the U.S. is stuck with a stubbornly high rate of 8.2 percent.
Besides a strengthening currency and a better labor market, experts credit the particularly savage fallout from the financial crisis on the U.S. economy and housing market, which torpedoed home values and gutted household wealth. According to the report, real estate held by Canadians is worth more than $140,000 more on average and they have almost four times as much equity in their real estate investments.
Experts also point to one other thing helping Canada — a fiscally conservative government with limited public debt. We don’t have that here, now do we?
But buck up America, apparently we have more liquid assets (cash) than our neighbors to the north. I guess we can hang our hats on that while we economically circle the drain.