With heavier wallets, middle-class Canadians may be more accessible than you think, according to a New York Times report, released Tuesday.
For the first time in its history, the NYT report states that Canada now boasts one of the richest middle-class groups in the world – surpassing the U.S. and tying with Britain for the most growth in earnings since the beginning of the millennium.
Income data – gathered by NYT since 1980 – revealed that Canadian middle-class income has risen almost 20 per cent, while American earnings have remained steady, since 2000. The last report, released in 2010, indicated that Canada and the U.S. were on par.
“After-tax middle-class incomes in Canada – substantially behind in 2000 – now appear to be higher than in the United States,” says the report.
The report – which looks at after-tax cash income to determine middle-class earnings of each nation – also indicates that families with below-average incomes in Canada, Sweden, Norway, Finland and the Netherlands are making more money than Americans in the same income bracket. “Thirty-five years ago, the reverse was true,” states the report.
The hit to the U.S. is being attributed to the recession that began in 2000, impacting the construction and manufacturing industries and in turn, the middle class, while allowing other countries, including Canada, to play catch up.
Americans, however, still earn more than the rest of the world, with the pay scale 20 per cent above Canada’s in the highest income bracket. This, economists say, can be attributed to most of the highest-earning corporate executives, celebrities and pro-athletes choosing to live in the U.S.; while indicating that as middle-class incomes erode the wealthiest remain on top.
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