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In a statement that is a shocking turn of events, Canada’s richest province, Alberta, is said to earn less in per capita income than Mississippi, the poorest state in the US. Such comparisons have sparked heated arguments online, which led to Prime Minister Justin Trudeau being placed at the point of focus. A controversial tweet by @KatKanada_TM which garners a lot of attention among the masses reads:
“Ten years ago, we were at par, now the richest province of Canada has a lower per capita income than the poorest state of the US, there is all Trudeau’s fault.”
– Kat Kanada, 13 December 2024
The richest province in Canada is now more poorer per capita than the poorest state in the US.
— Kat Kanada (@KatKanada_TM) December 12, 2024
We used to be at parity a decade ago.
This is all Trudeau's fault.
Is this sensational statement true? If yes, then what went wrong? Let us dissect the figures, piece the context together, and clarify why this issue has apparently become so contentious across the country.
By the Numbers: GDP and Per Capita Income
According to a 2014 census, Alberta, the most prosperous province in Canada, possessed a CAD 77,200 GDP per capita which is close to the USD 38,000 GDP per capita of Mississippi when adjusted to purchasing power. Considering the present scenario, however, paints a very different perspective:
- For 2024, Alberta’s projected Gross Domestic Product per capita stands at 71,900 CAD.
- As of 2024, the GDP per capita of Mississippi is forecasted to be 55,061 USD.
Taking into consideration inflation and currency differences, Alberta’s GDP position has remarkably fared poorer than Mississipi’s growing GDP rate. This economic trend, according to critics, however, is not new to Canada.
User @shimjelly decided to stoke the flames and tweeted:
Don’t forget the dude that lured many to the land of handouts for migrants!! pic.twitter.com/Ci7E5hJvEQ
— SHIMJELLY Jim (@shimjelly) December 12, 2024
However, criticizing Canada and Canadians is focusing on immigration rather than the real underlying issues where are the migration issues.
A Decade of Decline: What Went Wrong?
The 2010s represented the decade of prosperity for Canada, which was driven by soaring oil prices, trade surpluses, and expansion of the middle classes. Alberta stood out as it was well suited to be an active player on the global energy stage. Yet as we moved further into 2020’s, this economic success story began to unravel:
- High Inflation: The Consumer Price Index rose 6.8% in 2022, causing a significant erosion of Canadians’ real income growth, outpacing wage growth (Source: StatsCan, 2022).
- Federal Debt Ballooning: Under Justin Trudeau, Canada’s national debt through the roof at more than CAD 1.2 trillion— has fuelled a “spend and forget” approach to governance (Source: Parliamentary Budget Officer, 2023).
- Canadian Carbon Taxes: It has been heating Alberta, particularly Alberta, Canada’s federal policy emphasis on climate change has alienated this resource-rich province.
Altogether these trends have exacerbated an economy that is stagnating, and a real wealth per capita decline. The US on the other hand was better positioned having enjoyed a combination of low taxes and a strong private sector which translated into better-developed economies- even the least developed states.
The Twitter Debate: Divided Opinions
The criticism brought by the publication of the tweet by @KatKanada_TM, went viral, even leading to harsh debates gripping Canadian society.
@LochNess541787, for example, believes that economic issues might improve if people stopped supporting globalist policies:
Maybe if everybody stopped voting for globalists. pic.twitter.com/NoD3CnUdO2
— Loch Ness (@LochNess541787) December 12, 2024
While some people were solely concerned about Trudeau’s policies, some raised questions around the broader picture of the situation like the user @dfrntdrmmr being more critical:
Why are you making shit up and blaming it on @JustinTrudeau?
— dfrntdrmmr (@dfrntdrmmr) December 13, 2024
What purpose does it serve?
Mississippi is the poorest state in the United States by GDP per capita, with a real GDP per capita of $39,102 in 2023
In 2023, Alberta's GDP per capita was $72,530.
As the discussions revolved, other factors started to surface. While some mentioned policy failures such as the carbon tax and immigration, others argued how Canada as a whole was under immense economic pressure due to external factors like the COVID-19 pandemic, disruption in supply chains and international conflicts.
Making the conversation complex more, Chase Stevens @ChaseStevens2 pointed out:
That is not true and it's not even close. Alberta has a gdp of $96,500 per capita and Mississippi's is $39,100 US or $55,600.
— Chase Stevens (@ChaseStevens2) December 13, 2024
The overall discussion showcased an important point, economic growth cannot be attributed to only one individual or a singular policy, in fact, it is the entire system comprising national and international forces, economic conditions, and policies that determine how economies develop or weaken.
Now, while the debate continues, one question that arises very importantly is how do these Canadians altogether bring the economy back to course times? This isn’t a shocker for a state that operates in such a complex turmoil.
The focus of the debate is the question of accountability. Is Canada’s weakness in its economy a result of the policies of the government, or is it a situation that they cannot control? Wars, oil prices, and competition between markets made this issue more challenging.
This discourse bears the very divided nature of politics in Canada as some people blame Trudeau while others say it was the pandemics and Ukraine wars that were bigger influences that are out of anyone’s control.
Healthcare, Housing, and Debt: A Broader Perspective
As a part of G7, Canadians have a lot of issues that are not just restricted to their GDP:
- Increase in Household Debt: Every dollar of disposable income now has $1.83 debt which is among the worst ratios in G7. (Source: Statistics Canada, 2024)
- Food Bank Usage: Since 2019, Canada has witnessed an increase of 35 percent in the number of food banks. (Source: Food Banks Canada)
- The Housing Bubble: The Canadian property price index is pegged at USD 717 000, and that of Mississippi is at an average of USD 164 000. (Source: Trading Economics, 2024)
These problems also describe a general trend of economic downturn for Canada which is unfazed by the perception of Canada being an economic ultra power.
A Nation at a Crossroads
The fact that Alberta is now poorer than Mississippi is a lesson for all Canadians. Although some data are not consistent across countries and some key indicators, the central message, as always, is basic: Canada is in trouble and there are no quick fixes to rescue it from its economic crisis.
With elections around the corner, Canadians will have to ask themselves: Is there anything that could bring the country back in line with the goals for which it was founded and further to this measure place all future generations in a better position than their predecessors?
Would such policies as new kinds of taxation, better trade policies, and investing in growth sectors help? Does Justin Trudeau’s style of leadership fit in with these ideas? It is the scope of these issues that has been outlined as critical for the next Canadian chapter, given the growing need for concerted and decisive action.
What one knows for sure is that the argument is much more than just numbers. It is about the type of place that Canada will be in the coming decades.
Last Updated on by Saket Kumar
