I think you're forgetting to factor inflation with everything. Cost of products, certainly, but salaries increase as well. Not sure what math you're using for your $500/mo figure though.

Yeah, a car in the '50s cost $2000, but people brought home $100/week (or something ridiculous). I really don't think that inflation has affected things equally though. If Canada has an hourly minimum wage, look at how much that's changed while doing your math.

Long term solution? worst case, you make like mexico and re-do your money. "Nuevo pesos" ("new pesos") have been in use for maybe 10+ years, to replace the crap that had an exchange rate with the US of several hundred/dollar. Now it's more like 13/dollar.