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| Subject: Why is everything so damn expensive in Canada? |
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(Compared to U.S.) This part about Canada has always been something that´s irritated, frustrated, and quite frankly discouraged me. Typically it´s in the 30-40% range on most day-to-day goods and necessities, let alone cars, appliances, and big ticket items. Let´s not even talk housing prices in the major cities such as Montreal, Toronto, or Vancouver (whew, that last one will definitely bum you out!).
It explains why at border towns Canadians cross over to the American side, immediately fill up the gas tank, load the trunk to the gills with goods, and then wait in long lines to come back.
With the $CAD almost at parity with the $US, it´s even more perplexing. And the Canadian economy is strong, if not stronger than the U.S. at this time after the recent worldwide recession.
The only rational explanation I´ve seen on this was an internet posting I came across recently that answered many other such queries about this. I wonder if this makes sense to folks here, and how new immigrants cope and deal with the Canadian cost of living. Perhaps many come from counries where everyday prices were already similarly high, if not higher:
"The cost of living in Canada is actually lower than in the US. But in Canada, our taxes are higher. Our taxes pay for such things as universal healthcare, unemployment insurance, a pension plan, worker safety commission, guaranteed vacation pay, worker´s compensation, retirement plan and maternity pay. In some provinces they have a universal maternity pay system as well as a daycare program."
"All of this is actually CHEAPER than in the US if paid out-of-pocket there. In fact, healthcare in Canada costs half of what it costs in the US, covers everyone, and Canadians live about 2 years longer on average."
So, it´s the universal access to healthcare and social services via taxation on everyone and everything that´s reflected and factored into the price of goods, apparently. I guess everyone must come away with their own conclusions if this approach and system is important enough in their lives or not. In my case, it´s still a "yes".
[30-03-2010,19:10]
[***.130.12.0]
Richard |
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(in reply to: Why is everything so damn expensive in Canada?)
When I was a tourist here I could rationalize similar thinking. Now I wonder, why is my cereal twice as expensive at my local Superstore than it is at the equally isolated IGA across the border? Kashi cereal isn´t collecting dollars for medicare, nor should transportation costs be any higher to my own isolated community than to the isolated community an hour south of here.
I also thought that well, sure our income will go down when we move to Canada (which it did) but at least we won´t be paying for insurance, so that will make for it a little bit. Of course, that wasn´t to be. We pay almost as much for supplemental insurance (vision, dental, prescription drug coverage etc) as we did for all inclusive health insurance back in the US. Add that to the much higher cost of daily living, and it doesn´t add up.
Coming from the States might be really different than coming from other countries, as Richard pointed out. Probably compared to many European countries this is quite standard or possibly low (certainly real estate in Canada would be low compared to most of Europe), but from our particular circumstance it is shockingly high.
So how to deal with it? *Do without* is number one in our household, along with keeping detailed lists of every day items to stock up on at Target the next time we go down to the States. A lot of Canadians do the same thing, as is evidenced at every border crossing across the country. It´s not just Toronto/Buffalo, Vancouver/Washington State, and Windsor/Detroit; even tiny Grand Falls, North Dakota advertises to Winnipegers about their shopping opportunities.
It is perplexing but it´s a fact you can´t get around. I also wonder, how do other immigrants deal with it?
[30-03-2010,19:45]
[**.252.115.196]
wannabecanadian |
(in reply to: Why is everything so damn expensive in Canada?)
transportation costs is a huge factor, volume of purchasing is another. All our fresh fruit and vegetables come from the US and Mexico 8 months of the year. We have marketing boards to protect our dairy and egg farmers (to keep them in businesses).
We import goods, we export commodities. All the reasons you listed Richard are significant factors. I don´t know what you spend on health care costs but my annual expenditures for dentist, medical insurance premiums, glasses, chiropractor, perscriptions run me about $2,400 a year.
[30-03-2010,21:09]
[**.154.245.217]
Sharon |
(in reply to: Why is everything so damn expensive in Canada?)
You guys both make good points about this issue.
I´ve thought long and hard about how the high cost of living compares to having rights to emergency/health/family social services at almost no cost, but paid out of my taxes. Like Wannabe has experienced, after a while it´s hard to justify the constant bank account strain for an intangible safety net, on a day-to-day basis.
Most of my neighbors there were not able to save much, mostly because daily expenses took up just about their entire paychecks. In addition, they often took additional part time jobs in the winter to pay for the high cost of fuel in those colder, northern regions. It left me thinking that they´ll always have their health taken care of, but then what about the rest of their lives?
On the other hand, I read every day here about the catastrophic stories of bankruptcy, home foreclosures, and sudden destitution due job loss with having medical conditions, or simply insurance company claim/benefit denials for ridiculous reasons. I won´t go into pre-existing conditions, as that´s a story unto itself. And if you fall into one of those gaps, forget trying to find affordale insurance. And this is happening with regularity for tens of thousands of people.
Granted, the reform that just passed may help alleviate much of this, but 50% want it repealed. How people can vote against their own self interest is beyond me (it´s those southern states again!).
You guys must have heard about the National Association of Free Clinics sending doctors and nurses to poor regions of Louisiana, Arkansas, Texas to treat sick people with no access to medical care. For many, it was the first time they were able to see a doctor in years, if at all. And this situation is one of the primary causes of the 12,000-14,000 estimated deaths every year from preventable diseases because of lack of medical access.
It´s a situation straight out of a third world country. One has to ask, "what´s wrong with this picture"? The richest country in the world can´t take care of it´s own people in need? It´s shameful and embarrassing to be part of this system.
This would be impossible in Canada. And this is where I also see Sharon´s point of view. To a great extent, it´s not only a personal, selfish concern, but a moral issue as well. At least for me. Not an easy decision for many reasons, but from this point of view, easy. I know that not everyone coming from down here will agree and see it the way I do, and that´s understandable. I also know this has been hashed out here many times, but sometimes it´s good to remind ourselves what´s at stake in moving to or staying in Canada, and how it compares with it´s southern neighbor.
All this based on why things are so expensive there. But it´s really starting to make sense I think. And I see many points of view on this.
[30-03-2010,22:38]
[**.47.175.80]
Richard |
(in reply to: Why is everything so damn expensive in Canada?)
you picked the word right out of my mouth - catastrophic.
for those with run of the mill health care needs and steady employment... US/Canada is probably a wash. As soon as something goes sideway- I think I would rather be living in Canada.
I NEVER worry about health care. Hard to know what that peace of mind is worth.
[30-03-2010,23:47]
[**.154.245.217]
Sharon |
(in reply to: Why is everything so damn expensive in Canada?)
Contrary to Sharon, many Canadians move south, some even permanently. High taxes and expensive goods is the reason.
To you all in maple country, good luck :)
[31-03-2010,00:22]
[***.136.132.141]
apron |
(in reply to: Why is everything so damn expensive in Canada?)
when the world is a bowl of cherries, perhaps the US is the better option. Unfortunately, I have witnessed too many bowls of pits. Therefore, I will be content to pay my taxes, high grocery bills and stay exactly where I am.
Everyone is free to choose acordingly.
[31-03-2010,02:09]
[**.154.245.217]
Sharon |
(in reply to: Why is everything so damn expensive in Canada?)
Canada is so expensive otherwise stupid people like you will have nothing to talk about in an immigration site!!!!! This site I guess a great place for a bunch of losers to kill their time talking shit !!!!!
Do you want to have more talk? next time please open a new discussion like, how people use maple syrup? OR Why Canada is colder than USA?
[31-03-2010,02:17]
[**.87.4.249]
puh |
(in reply to: Why is everything so damn expensive in Canada?)
takes one to know one.
[31-03-2010,02:38]
[**.154.245.217]
Sharon |
(in reply to: Why is everything so damn expensive in Canada?)
Well Richard and Wannabe it has been nice to know you. Really nice to debate inportant subjects like why things are so expensive in Canada.
I remember visiting New London CT many years ago and then driving on the Internet bridge over town heading home. Ten minutes after I crossed the bridge it collasped. The bridge is on a major Interstate.
Do bridges collaspe in Canada, yes. Is the percentage less compared to the number of bridges don´t know. I feel safer here with more political parties, less people, less problems etc.
Personal choice.
When everything is set on my blog I´ll invite certain individuals over.
Then Puh and other Trolls who can not get any clients because they give bad advice can join with the other DIY poor advisors.
Roy
cvimmigration.com
[31-03-2010,07:36]
[**.229.28.7]
Roy |
(in reply to: Why is everything so damn expensive in Canada?)
most of the money collected by the govt goes into healthcare for everyone. let´s wait and see when US start providing universal healthcare. I bet those protesting in the US about the universal healthcare are those who pay much more tax than their healthcare insurance.
[31-03-2010,12:26]
[**.233.232.253]
SG |
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