Canada’s middle class isn’t doing as badly as you think, according to a new study.
A Fraser Institute report says incomes have risen by as much as 52 per cent since 1976, and workers have more purchasing power.
Author Donald Boudreaux says other studies that have said the middle class is stagnating have failed to properly adjust for changes in taxes and government transfers like the child benefit.
“Another change is to adjust for inflation better, and that’s not just our determination — that was determined by several scholars that have looked at Canada’s CPI. They found that it over estimated inflation by about a half of percentage annually, which adds up over 35 or 40 years,” Boudreaux said.
Boudreaux says in 1976, buying a microwave would have cost the average Canadian 109 hours of work.
Today, it would only mean 10 hours of wages.
