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Living in Canada

May 27, 2019

Living in Canada is extremely challenging and not getting easier.  The cost of living continues to increase faster than incomes and taxation is not helping.  Adding the new carbon tax to the mix it is highly likely that Canadian consumers are paying more than half of their income in some form of taxation.  Paper, ordinary laser printer paper has increased in price from about $9.00 to $12.00 per 500 sheets an increase of 25%.

House prices, in many areas, have doubled in the last five years, the cost of food at the grocery store has increased substantially with some products almost doubling in price.  And yet, through all of these increases the lowly wages in Canada have decreased continually for decades.

If you earned the average family income in 1977 you would have had $19,740.00 per year, in 2018 that number would be $79,736.00.  At first blush that may not appear too bad except that families have changed and contributors to family income levels are different.  In 1977 the income probably came from a single income earner or was a combination of one full time income earner and one part time earner.

By 2018 the picture had changed, and the family structure included more income earners.  Not only that, but taxes almost doubled reducing the purchasing power of each dollar quite considerably.  The result is that Canadians have resorted to the use of credit to cover many of the basis necessities of life.  

In fact, the use of credit has, year over year, increased at almost three times the growth rate of income, and the cost of goods sold, as noted above, has also increased faster than incomes.  Living in Canada is becoming a more expensive proposition with each passing year and theer is no ready sign of either taxation or debts abating.