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Canada is more expensive, but not by a whole lot. Groceries are a bit more yes, but still not too bad. Eating out is roughly the same.
I disagree on eating out. We have eaten out a lot all over the US and most of Canada. We have found the prices to be considerably higher in Canada with a few exceptions. Just look at the menu prices online for chains like Applebees, etc. that are in both Canada and the US.
The minimum wage is a much bigger issue in Canada because the percentage of Canadian workers receiving minimum wage is much larger than in the US. A far greater number of US workers earn above the minimum wage. The fact is that productivity is much higher in the US.
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that pretty much says it all - the US has high productivity, and the gap has been increasing in the past few years. Strong unions in Canada make sure many workers don't have to work as hard as they should in a fully competitive labour market to keep their jobs.
Americans also work longer hours and have fewer vacations. Of course they make more money and enjoy lower prices.
It will surprise me if Canada is cheaper. Canada is more expensive because it is a less developed country - why don't people get that? You produce more, things become more affordable and living standard increases.
Yet many of us including some media still pretend productivity doesn't matter.
so stupid. "The survey divided median housing prices in Australia, Canada, Hong Kong, Ireland, Japan, New Zealand, Singapore, the U.K. and the U.S. against median gross household income to come up with its ratings."
OK, the survey looked at 9 countries, and concluded Vancouver is most expensive on the planet? IIs the planet that small?
I am pretty sure cities like Shanghai, Beijing, Mumbai are all more expensive. What about Monaco? Zurich? Paris? Those people in Shanghai will kill to spend $1M on a 4 bedroom freehold house with a backyard.
Plus, the news editor should know that Hong Kong is NOT a country, not to mention a western country. What the hell is a western country? Why are Singapore and Japan also considered "western"?
Strong unions in Canada make sure many workers don't have to work as hard as they should in a fully competitive labour market to keep their jobs.
I don't know that unions do much, if anything, to explain the productivity gap, botticelli. While the rate of unionization is higher in Canada, no doubt about it, I'd suggest that competitive advantages offered by having a largely non-union workforce and at will employment laws in every American state other than Montana -- at will employment being a completely crazy concept in my opinion -- combined with higher investment in technology and automation in the United States, as well as a large undocumented pool of Mexicans and other non-American hispanics working illegally south of the border who are unwilling to kick up a fuss due to their status, may do significantly more to explain the productivity gap between Canada and the United States.
The Canadian dollar has fallen by about 12%, against the US dollar, in the past year or so, so any prices that reflect a cost south of the border will be quite a bit higher than they were a year ago.
However, anything paid for with exchanged US dollars would now be quite a bit cheaper, as you can get 1.12$ Canadian for a US dollar.
Quote:
Originally Posted by botticelli
Yet many of us including some media still pretend productivity doesn't matter.
Productivity doesn't matter. It is Economy Of Scale that matters. It is cheaper, per unit, to produce 100,000 jars of mayonnaise, than 10,000 jars. Also, consider that most of what people in BC consume has to be produced or processed in Ontario, and shipped 5,000 km. Productivity is not to blame for geography.
Speaking of geography, keep in mind that in all of Canada, a very large number of workers are seasonal, because a lot of work (building, road maintenance, natural resources) are impossible to carry through the winter. So the kind of productivity that Americans enjoy in the south and west is impossible to achieve, all other thins being equal.
More cars are made in Ontario than in Michigan, including about half the cars sold in Michigan. How do you call that lack of productivity?
Speaking of geography, keep in mind that in all of Canada, a very large number of workers are seasonal, because a lot of work (building, road maintenance, natural resources) are impossible to carry through the winter. So the kind of productivity that Americans enjoy in the south and west is impossible to achieve, all other thins being equal.
Personal bugbear here: while the nature of the work may be seasonal, workers are not seasonal. The workers should follow the available work or try to do something indoors. That's what used to happen in Newfoundland before the disease that is UI/EI infected so much of the local workforce.
I don't know that unions do much, if anything, to explain the productivity gap, botticelli. While the rate of unionization is higher in Canada, no doubt about it, I'd suggest that competitive advantages offered by having a largely non-union workforce and at will employment laws in every American state other than Montana -- at will employment being a completely crazy concept in my opinion -- combined with higher investment in technology and automation in the United States, as well as a large undocumented pool of Mexicans and other non-American hispanics working illegally south of the border who are unwilling to kick up a fuss due to their status, may do significantly more to explain the productivity gap between Canada and the United States.
why is at-will employment crazy?
Employers should have the flexibility to lay off anyone they think are unnecessary or being unproductive. Such flexibility reduces business cost and improves overall productivity. If it difficult or impossible to fire someone, then companies are just stuck with people who are not qualified for the job -- what makes things worse is that the younger generation will have fewer opportunities.
at-will employment is the only employment format that makes sense in my opinion.
As to undocumented workers getting local jobs - I have no problem with that. If someone is willing to do the same work for 30% lower, we should be happy to give them the chance. Anything that helps to lower cost of running business is good for the economy.
For example, why are all the infrastructure projects becoming increasingly expensive such that building a 20km subway costs multi-billion dollars often with huge cost overruns? Labour is too expensive, and because they are all unionized, they slack spend 4 hours finishing job that should take 3, and then they got the OT to get paid even more. If labour is not unionized and the government is free to hire whoever is qualified at market wage, all the projects will be significantly cheaper and faster, and this benefits all tax payers.
If a typical Canadian can be easily replaced by an uneducated Mexican with less than 9 years of education who speak broken English, then this Canadian should think about what he could and should do to improve himself, instead of blaming others for driving wages lower. Being born in a rich country doesn't make anyone automatically deserve a better life - we all need to work hard for the life we want.
More cars are made in Ontario than in Michigan, including about half the cars sold in Michigan. How do you call that lack of productivity?
I fail to see how you can determine productivity here.
Productivity is the ratio of output to inputs in production. So in order to compare whether making cars is more productive in Ontario, you need the denominator (costs, including all-in labour cost, of making those cars.)
The minimum wage is a much bigger issue in Canada because the percentage of Canadian workers receiving minimum wage is much larger than in the US. A far greater number of US workers earn above the minimum wage. The fact is that productivity is much higher in the US.
Just what additional food standards does Canada have? It is not just food that is more expensive, so are most items.
FYI, the local purchasing power in Vancouver is 34% lower than San Diego CA. San Diego is a high COL city with average income. Local purchasing power is the cost of living vs income. An average person in San Diego can buy 34% more than the average person in Vancouver. FYI, the average Monthly Disposable Salary (After Tax) is over $1,000 /mo ( 26% ) higher in San Diego than Vancouver.
I tried to find some stats, but they are from 2004, so before the crisis. Also, I wonder if some of the minimum wage stats in the U.S. state what percentage work for less than minimum wage or live in states that did not have a minimum wage.
It gets even more complicated when you factor in different minimum wages for different jobs. Liquor servers etc.
Just numbers showing what percentage work for minimum wage don't tell the whole story. As I like to inform friends in Australia who brag about the lack of a tipping culture in Australia " We pay our waiters a living wage so they don't need tips " is the usual cry.
I counter with, true our wait staff may make 5 dollars less an hour, but they make more that most Australian wait staff when you count in the tips.
Food standard is a minefield. Are we talking about food quality or food safety? For food quality both countries do very well. I think when Canadians think about food quality compared to the U.S. they think of things like "Pink slime". That would never have been allowed in Canada. Also things like BGH ( bovine growth hormone) being legal in the U.S. Chocolate, meaning what each country can legally call chocolate. The UK's standard is higher than Canada's, and Canada's standard is higher than the U.S. Many Canadians find regular chocolate bars in the U.S. waxy.
Food safety…both countries, like everywhere have had issues. This from food safety.org
"Canada, with a population of 32 million, has approximately 10,000 reported cases of foodborne diseases each year and an estimated two million actual cases.3
In the United States, the Centers for Disease Control and Prevention (U.S. CDC) estimates that foodborne diseases cause approximately 76 million illnesses annually among the country’s 294 million residents, as well as 325,000 hospitalizations and 5,000 deaths per year. Known pathogens account for about 18 percent of the illnesses and 36 percent of the deaths, while unknown agents account for the rest. Three pathogens in particular, Salmonella, Listeria, and Toxoplasma, are estimated to cause 1,500 deaths each year.4
Since 1996, the U.S. CDC has been tracking well-known foodborne diseases through its FoodNet program and has reported a decline in major bacterial foodborne illnesses including Yersinia, Campylobacter, Escherichia coli"
Last edited by Natnasci; 02-01-2014 at 05:11 PM..
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