Why is food more than twice as expensive in Canada than in the U.S.?

Question

I pay more than twice the amont in Canada for the same exact items at Walmart than in the U.S. Where does the money go?

Answer 1

When you compare prices between countries the exchange rate is part of the measure . Over the last 3 years the value of the Canadian dollar has increased from 1.5 to 1.1 per US dollar. A US citizen would see this as a 30% price increase on things purchased in Canada. Prices for food also vary across the US, cheaper for local product and more expensive if you ar far from the source or out of season. Since many crops will not grow in most of Canada's climate conditions you would expect much of the food to cost more. Wages are higher for low wage workers in Canada, so labor cost are higher for a retail store which typically have 30% of its coast in labor.

Answer 2

Canada has a less productive economy. This means that on average it ties up more labor and resources in Canada to produce and distribute a given product than in the US. If Canadian labor were radically cheaper than in the US, things could still be less expensive (which is the case in, say, China), but since labor is not significantly cheaper, things cost more.

Taxes are not a separate reason -- they are a part of the above explanation, because taxes and government activity are part of the economy's resource allocation.

Answer 3

It has to do with the population difference. In the US there are approx. 300 million people. In Canada there are about 30 million.
They have to pay alot more in taxes also.

Answer 4

canada has ups and downs. they have free health care, but to make up for that, they charge more on other things

Answer 5

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