22 April 2014
In order to determine how much middle class workers earn, the research measured after-tax cash income.
According to Douglas Porter, chief economist and managing director for BMO Nesbitt Burns, the growth of Canada’s middle class income needs to be viewed in relative terms. “It not only shows how pushed back was the U.S. by the recession, but also gives a positive sign for Canada”, – noted Burns.
And while many countries have shown certain middle-class growth, the economic recession of 2000 has significantly restrained U.S. middle-class earnings.
As a result, other countries could catch up, including many European countries. For example, Britain, the Netherlands and Sweden got closer to the U.S. middle-class income.
It’s interesting that families with below-average incomes in Canada, Norway, Sweden, Finland and the Netherlands today earn more than Americans. “As you know, 35 years ago the reverse was reported,” – says the release.
Nevertheless, Americans at the top of the income scale remain the richest in the world with 20% ahead of Canada.