BCme BCme:
Why is it so expensive to live in Canada compared to the U.S?
Just to preface, I am not here to knock the Canadian system. I seek only to understand.
Both Countries have dairy subsidies from what I have read, but milk in Boise Idaho is around $2.50 a gallon while it is around $4.50 for 4 liters, just around a cup more than the American gallon and $2.00 more in price here in BC.
When I am in Superstore or any other Canadian grocery store, most items are more expensive here. Why is it an item you find in America cost more in BC? Also, many items associated with being American are manufactured here in Canada... so I would think that would lower the price, but it does not.
Like Budweiser. Here in Canada it is brewed by Labatt, a Canadian company, but Budweiser costs much more here in BC than in Boise Idaho. Again why? From what I have heard, I can buy Canadian beer in Boise cheaper than what I can get it for here in BC.
Now Boise Idaho has great prices, and I understand places like NYC and L.A. have higher prices than Boise. So region definitely plays a part. Perhaps the high prices are just here in the Vancouver area and the Fraser Vally. I have not done enough traveling through Canada to know if the high prices are regional of throughout the Country.
I'll let you in on a secret - in most countries I've visited (and/or lived in) - American-made products almost always cost MORE than domestic products. That is usually due to importation duties and shipping costs. Same goes for lots of foreign-made products here in North America.
There are lots of reasons for price differences between Canada and the USA - lower population (both density and total numbers), different taxation systems, different societal priorities (health care and social programs up here and privatized medicare and a huge military down there for starters). Our geographical size also plays a significant factor, because it takes more energy & time (shipping costs) to ship something from California to Canada than it does to most parts of the USA. And even though NAFTA exists, some products still incur duties when they cross the border.
The big difference on alcohol, cigarettes, etc. are because of sin taxes - the government takes a far bigger chunk of the price here in Canada than it does in the US. For the most part, this isn't really to stop people from consuming them, but generally looked at as a method of funding the costs of those products on society (although some past governments have tried raising prices on cigarettes to prevent usage, but that just created a black market in the product, so prices were dropped again).
I'd say basically it boils down to a difference in culture - Americans tend to be concerned about themselves and their individual rights, while Canadians tend to be more collective and worry about our country as a whole. Just look at the difference in national mottos: US = Life, liberty and the pursuit of happiness, Canada = Peace, order and good government.
The bottom line is we have a very different outlooks on how our countries should be run.
And sorry, but comparing Boise with Vancouver and Fraser Valley is totally specious. If I compared New York City and Kamloops would it be fair? Of course not. At the very least, you need to compare similar sized cities with similar standards of living.
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