Out of Ottawa, Some Deflating New Stats on Life in the World’s Richest Nation

Sam Pizzigati

Sam Pizzigati Editor, Too Much online magazine

South of the border, here in the United States, we Americans tend not to pay much attention to our northern neighbors. Entire election cycles can come and go without anyone running for national office saying anything significant about Canada.

But that all has changed of late. Canada now looms large in our politics, mainly because many more of us have realized that Canadians enjoy a health care system far superior to our own, by every meaningful yardstick of fairness and efficiency. Canada’s single-payer approach to health care has become — for progressives in the United States — a guiding inspiration. We want what the Canadians have. We need what the Canadians have.

And we need what Canadians have, an innovative new study suggests, on more than just health care. Average Canadians, this research relates, now enjoy higher incomes than their counterparts in the United States.

The new report — Household Incomes in Canada and the United States: Who is Better Off? — comes out of the Ottawa-based Canadian Centre for the Study of Living Standards and essentially challenges the conventional wisdom on economic well-being. That wisdom, report author Simon Lapointe notes, typically defines well-being as GDP per capita.

To calculate this GDP yardstick, economists take the sum total of the goods and services a nation produces, divide that total by the nation’s population, and tell us that the resulting number measures how well a nation’s people are doing economically.

By this standard measure, Americans are doing much better than Canadians. In 2016, the latest year with comparable stats available, GDP per capita in the United States ran over 20 percent higher than GDP in Canada, $57,798 to $47,294, in U.S. dollars adjusted for what economists call “purchasing power parity.”

But GDP per capita can obscure reality as most households live it, especially in a deeply unequal society like the United States. Lapointe acknowledges in his new Canadian Centre for the Study of Living Standards report that American households certainly do rate as richer than Canadian on average. But “much greater incomes at the top of the income distribution” in the United States, he points out, are driving the difference in the Canadian and U.S. averages.

Sam Pizzigati edits Too Much, the online weekly on excess and inequality. He is an associate fellow at the Institute for Policy Studies in Washington, D.C. Last year, he played an active role on the team that generated The Nation magazine special issue on extreme inequality. That issue recently won the 2009 Hillman Prize for magazine journalism. Pizzigati’s latest book, Greed and Good: Understanding and Overcoming the Inequality that Limits Our Lives (Apex Press, 2004), won an “outstanding title” of the year ranking from the American Library Association’s Choice book review journal.

Posted In: Allied Approaches

Union Matters

Steel for Wind Power

From the USW

From tumbledown bridges to decrepit roads and failing water systems, crumbling infrastructure undermines America’s safety and prosperity. In coming weeks, Union Matters will delve into this neglect and the urgent need for a rebuilding campaign that creates jobs, fuels economic growth and revitalizes communities. 

Siemens Gamesa last month laid off 130 workers at its turbine blade manufacturing plant in Iowa, just months after GE Renewable Energy decided to close an Arkansas factory and eliminate 470 jobs.

The companies reported shrinking demand for their products, even though U.S. consumption of wind energy increases every year.

America’s prosperity depends not only on harnessing this crucial energy source but also ensuring that highly skilled U.S. workers build the components with the cleanest technology available.

Right now, the nation relies on imported steel and turbine components from foreign manufacturers like China while America’s own steel industry—well equipped for this production—struggles because of dumping and other unfair trade practices.

Steel makes up the bulk of turbine hubs and the wind towers themselves. It’s also used to make the cranes and platforms necessary for installing the towers.

Yet the potential boon to America’s steel industry is just one reason to ramp up domestic production of wind energy infrastructure.

American steel production ranks among the cleanest in the world, while China has the highest carbon emissions of any steelmaking nation and flouts environmental regulations.

The nation’s highly-skilled steelmaking workforce must play an essential role in the deeply-needed revitalization and modernization of the nation’s failing infrastructure. Producing the components for harnessing wind energy domestically and cleanly is an important step that will put Americans to work and position the United States to be world leaders in this growing industry.

 

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There is Dignity in All Work

There is Dignity in All Work