Us vs them

Days ago we reported the average household net worth in Canada is now a million. So says StatsCan. The families with the greatest NW are in BC. That’s where Greg lives.

As a reader pointed out (rightly) averages can lie. It takes only one ridiculously wealthy tech bazillionaire to skew an average skyward. So talking about median net worth is better – that number at which half of us have more and half less. In Canada that’s just under $520,000.

Still a healthy number. Real estate in the last two years has dragged it down as houses deflate. Financial market gains have plumped it, since stocks have been on a tear.

By the way, four in ten families have a net worth of eighty grand and hold just 3% of the society’s wealth. The middle 20% of Canadians have that NW of about half a million. The top fifth have holdings averaging $3.5 million. These guys hold two-thirds of all household wealth.

BC, Greg’s home, has the richest families. The median there is $773,500 – reflecting an insane real estate market.

So, who’s Greg?

He wrote this yesterday in this pathetic blog’s dodgy comments section:

“Garth and the other top 10 %ers on here think everything is just ducky. They, for whatever root cause are wealthy. That gives them an entirely different frame of reference than what all us average people have.

The remainder of us are either stupid or lazy, probably both. The fact we are not wealthy just reinforces their belief of our stupidity and laziness. At some point it will all come down to pitch forks. Then their greed and smugness ruins it for everyone.”

It’s worth pointing out that because some people have more wealth than others, it does not make them greedy or smug. They’re just better at it. And while they may control a lot more assets, they also foot far more of the taxes that support everyone.

In fact the top 10% collect 34% of all income and pay 54% of all income taxes. Without them, the Gregs of this world might have sharply lower disposable income and likely fewer social supports.

Actually, the more you make the worse it gets. The top 1% take home 10% of total income and pay 22.5% of total income taxes.

We’re not talking about Elon Musk here. Or even that nerdy Weston guy who mercifully stopped making TV commercials, trying to look normal. To be a 1%er Canada you need an income exceeding $293,000. The average income of all the folks in this top echelon is $606,000 and the median is $403,000.

How many people make over $293,000?

A total of 310,600, out of 42 million. Of them, three-quarters are dudes.

We gain nothing as a society by calling them out, suggesting they’re distant, uncaring, unknowing, greedy or tone-deaf. Are they smart? Probably? Do they work harder? Likely? Are they prone to leading one-sided, unbalanced, workaholic, obsessed lives when, for example, they might write fresh blog commentary on a Sunday morning? No comment.

By the way, how did I make my money?

Not real estate, at least in any major way. My predilection for flitting around in various houses and cities over the years has brought profits and losses, Probably equal. Being an employee is hardly the way to get into the 1%, even doing some glam jobs like being a TV talking head or vaunted newspaper columnist. Or writing 17 books in a country where a ‘best-seller’ means the publisher gets her money back and authors nibble crumbs.

No, it’s risk that gets you there. At least for me.

I’ve started or bought companies that produced television programming, ran country inns, did online broadcasting, owned bars, leased commercial properties, served fresh muffins, restored heritage buildings, did Internet commerce, raised sheep and published six community newspapers. After I was 60 I started a wealth management business, which flourishes. Every venture, every project, each investment and all the employees – were personal risks shouldered by me. And her. Dorothy. I probably love her most where she looks over and says, “What’s next?”

Maybe a pitchfork company,  I suggested this morning. Seems to be a market.

About the picture: “Meet Newton, a hard-working dog on an Icelandic horse farm, and one of the friendliest canines you could ever meet,” writes Heather, in Surrey. “Thanks for toiling over your smokin’ hot keyboard all these years, and doing a terrific job of educating your readers about all things financial. Your free, daily blog is greatly appreciated.”

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