What cost-of-living crisis? The data tell a different story
Widespread anxiety about the cost of living in Canada and other Western countries reflects a perception gap rather than a broad decline in material well-being, writes Claude Lavoie. While polls show most Canadians feel squeezed, Statistics Canada data indicate that after-tax incomes and net financial assets have grown faster than prices for a majority of households over the past decade, including since before the pandemic. Lavoie says the disconnect is driven less by inflation itself than by slower growth in living standards compared with previous generations, combined with social media–driven comparisons and rising expectations that make many people feel poorer despite objectively higher incomes.
