Canada's Middle Class A Success : Trouble Coming?

In any free market, when demand increases so will the price. The problem in Canada, as the United Sates, the government will step in and begin the downward spiral into recession or worse just like here in the US.

Once the progressives democrats took absolute power in 2009, the decline took on new meaning and speed. 'Never let a crisis go to waste' was the motto in the Obama administration, ala Rohm Enamel, chief of staff for Obama. The recession that started in 2007 and 2008 was a perfect storm for the progressive socialists to begin their attack on the economy and the country's Constitution.

But it wasn't just Mr Obama and his cohorts in seats of power that destroying the American dream of a free society to chose ones own destiny, don't forget it was the voters that put them there, twice, and will likely do it again in 2016. Only this time it will be the Clinton crime family foundation that will calling the shots

Canada's Affluent Middle Class At-Risk
 Source: Wendell Cox, "Canada's Affluent Middle Class At-Risk," Huffington Post, August 26, 2015.

August 28, 2015

The American middle-class continues its losing streak. In a remarkable achievement, the Canadian middle class has surpassed their American counterparts in per capita median income. While households in the U.S. struggled along during the Great Recession, Canadian households fared much better in large part due to the notable stability of their banking system.

In the last decade, Canadian incomes grew nearly 20 percent, while U.S. incomes grew only 0.3 percent. Much of the difference is attributable to U.S. fiscal policies that propelled the destructive housing bubble and subsequent bust. Toronto area house prices have increased 95 percent in the last decade, more than three times the earnings increase rate of Ontario workers.

Vancouver City Savings Credit Union (Vancity) indicates that present trends could drive Vancouver detached house prices to $2.1 million by 2030, double current prices. However, some economic indicators suggest that Canada\'s newfound distinction may be short-lived.

In some parts of Canada, particularly those concentrated around metropolitan centers, skyrocketing house prices are chipping away at discretionary income. House prices in Toronto and Vancouver have exploded in recent years. Rising house prices threaten socioeconomic stability: lower income households lose a greater share of discretionary income to higher housing prices while middle income families are shut out of homeownership, a useful tool for building wealth through equity.

In order for all income levels to enjoy the benefits of homeownership while preserving discretionary income, policy reform must target current urban containment legislation and prevent similar programs from being implemented elsewhere.