April 22nd, 2014, 08:27 PM
The Wealth of the Middle Class, eh....
This is interesting to me because for a few years i've been trying to figure out why so many middle-class voices around the world seem so crazy-socialisticy-revolutionary. Probably because I'm living in a bubble where things are going okay and we're holding our own for the most part.
Canada’s middle class appears to be the richest in a new study of incomes in several big countries.
The in-depth report published today in The New York Times, which looks at about 20 nations, indicates that Canadians have bumped Americans out of the top spot they have long held.
"Middle-class incomes in Canada - substantially behind in 2000 - now appear to be higher than in the United States," David Leonhardt and Kevin Quealy write. "The poor in much of Europe earn more than poor Americans."
The UK median income is still behind that of the US, but it's catching up fast - a 19.7% increase since 2000. This is the same increase as Canada's, whereas the US number was up by only 0.3%. (It's worth noting that Germany's middle class is also stagnating - at 1.4%.)
One note of caution, depending on their methodology, some of this effect could be accounted for by the US deflating its currency since 2008 to export its recession abroad and make other countries deal with it. Now that this policy is winding down, it may change the relative standings as our currencies rebalance toward longer-term averages.
April 23rd, 2014, 11:12 AM
Re: The Wealth of the Middle Class, eh....
Hand in hand with this is the news that Canada's debt to GDP is about 65% versus the US at 105%.
April 27th, 2014, 08:15 PM