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If Canada is 'Ripping Off' the U.S., Why Is It Falling Behind?

Americans have been widening the prosperity gap with our neighbors for years.

J.D. Tuccille | 9.7.2026 7:00 AM

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(Illustration: Midjourney)

President Donald Trump's latest temper tantrum over Canada, including the renaming of Lake Ontario as Lake America after the collapse of trade negotiations, is premised on the claim that "Canada has been ripping off the United States for decades." At least, that's what the White House insisted in an August 25 press release about the tariff dispute. But, if that's true, why are Canadians poorer than Americans and falling further behind?

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Americans Grow Wealthier More Quickly Than Canadians

A new study from Canada's Fraser Institute points out that while our northern neighbors started the century with high hopes for their economic prospects, the years since have shown them lagging Americans. If Canadians are taking advantage of us, they're doing a remarkably poor job of it.

"In 1999, inflation-adjusted gross domestic product (GDP) per person in the US was CA$10,766 higher than in Canada. By 2024, that gap had more than doubled to CA$23,757," write study authors Grady Munro, Jake Fuss, and Joel Emes. "Similarly, in 2010, inflation-adjusted median employment income in the US was CA$6,126 higher than in Canada. By 2024, that gap had increased to CA$8,663."

The Fraser study notes that since 1999,........

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