In 2023 the GDP per capita for Canada was $53.4K. Twelve years earlier it was $52.2K.
In 2024 the GDP per capita decreased by 1.4% (to $52.6) showing no growth over 13 years.
But wait, there’s inflation to consider. The Bank of Canada tells us that over those 13 years inflation was 34%. Thus, in real dollars, Canadian GDP per capita is down by a third.
What happened?
DB2
The chart you cited says that it is providing Canadian per capita GDP in current dollars. IOW, those figures have already been adjusted for inflation. So you’re double-counting inflation.
I believe current dollars are not inflation adjusted but use the dollar amounts at that time (hence, current). Inflation adjusted numbers are usually called ‘real’.
From the BEA:
“Real” or “chained” GDP numbers have been adjusted to remove the effects of inflation over time, so different periods can be compared. “Current-dollar” or “nominal” GDP estimates are based on market prices during the period being measured.
DB2
Or constant dollars. If you look at the FRED chart of Canadian per capita GDP in constant dollars, it doesn’t show that it’s fallen by a third - it shows roughly the same slope as the chart you linked to:
So I think the explanation is that the mactrotrends chart is using constant 2024 (or 2025) U.S. dollars and calling those “current” dollars. Or they’ve just mislabeled the chart. But Canada’s real GDP per capita has not fallen by a third in the last thirteen years.
That’s good news. The bad news is that they haven’t seen any growth in per capita GDP in 13 years.
DB2
We discussed this tangentially in a different thread last week. Someone said that Canada values stability and I replied that it is indeed true that they value stability over growth.
So odd. I watched a press briefing just today from a white house where the spokeswoman practically shouted about the disastrous economy the previous guy left behind.
Now I’m confused: which to believe. Her, or your chart.
Tough call.
Maybe it isn’t the GDP per capita that makes for a happy population. Maybe it is how the benefits of that GDP are spread around?
US Gini per World Bank, 41.3%, 2022, slightly higher than Haiti.
Canada: 31.7%, 2019, slightly higher than France.
Steve
So if we believe this chart, the Biden economy was supercharged.
That’s so silly. In today’s world (start of golden age) we believe both, whichever is convenient at the time of utterance.
Some of us are slow learners, but I think I’m catching on.
GDP is inflation-adjusted. So you are double counting inflation.
I think the doctor realizes that now, but DrB has still has some serious concerns about Canadian gdp:
It’s comforting in time of some tension between US and Canada that someone is showing this level of compassion for another country, despite their ineptitude for growing wealth.
Maybe Canadian’s are clever with their money, you know, get more for less?
Canada spends about 12.5% of gdp on healthcare vs about 17.5% for usa.
But maybe the money-ignorant Canadians are getting “less health” for their less spend on healthcare? Well, Canadian life expectancy is 4 years longer than usa.
And because Canada has much less income inequality than the usa, per capita gdp is a more accurate measure of typical (let’s say 50th percentile ) individual standard of living in Canada than usa. In usa, per capita value will be skewed by fewer wealthy individuals.
But still, for those money-ignorant Canadians, good to show them some compassion for having less $$$.
Edit: Elderly poverty rate
USA about 14%
Canada about 5%
Still, USA per capita gdp > Canada. Silly Canadians.
Disclaimers: all factoids above from quick web search
Is the doctor really a doctor? I have seen him post many dubious positions from the conservative viewpoint, and he certainly does post information out of context with such precision that by only going to his references does one find out the truth.
The economy continued its growth trajectory from before the pandemic. The US economy has a lot of resilience.
The two big issues during the election were ‘the two eyes’, immigration and inflation. The inflation part had different impacts on different parts of the economy. People such as those on this board did well because of things such as a rising stock market.
Inflation was up some 25%, so were wages (eventually). However, the 25% increase in wages was the average which meant that half didn’t keep up with inflation. This proved difficult for those on tight budgets, and high interest rates were a double whammy for those who had to buy things on credit (such as an automobile).
DB2
I wonder what the child poverty rate comparison would show. Spoiler alert…
One thing’s for sure, our needless trade war will hurt Canada and their GDP.
A lot of people in the US write off blustery 51st state comments as nothing but silliness. Canadians are taking those threats seriously. And…they should.
Winners and losers for sure, but overall the lowest income earners enjoyed the biggest wage growth.
I think you are wrong. I think what you “believe” does not matter.
Was crushing everyone under the last management.
Things are going wrong currently.
The “MDs” in congress are the most self centered users of the bunch. Most practicing doctors squirm at the thought of them.
