Canada’s prosperity gap with the US keeps widening, study finds
“The ability to transform raw materials and other inputs into demanded goods and services increased by more than a factor of 2.0 in the US compared to Canada, which explains much of our languishing living standards,” said Fuss.
Francis Fong, managing director and senior economist at TD Bank in Toronto, previously said that “past efforts of tax and regulation reform have failed to meaningfully reduce compliance burdens and promote economic and business dynamism — a must to seriously address the root causes of Canada’s ailing productivity.”
Mortgage brokers face income-squeezed clients
The inflation-adjusted median employment income gap between the two countries stood at CA$6,126 in the United States’ favour in 2010, and widened to CA$8,663 by 2024. That compression in relative earnings intersects with elevated home prices across Canada’s major markets.
The widening wealth and income divide among Canadian households has been flagged by Statistics Canada as a compounding risk for borrowers entering or renewing in today’s mortgage market.
“When comparing the economic performance of Canada relative to the US since the beginning of the 21st century, it’s abundantly clear that Canadian policymakers have failed to create an environment where we can prosper,” said Fuss.
