As a rule, Canadian citizens are highly mobile to the US due to the TN visa, the lack of a language barrier, close proximity and the extreme similarity of cultures.
So if Canadian companies actually need that talent, and for some structural reason related to being located in Canada they are unable to pay for it, then their business isn't viable. Full stop.
If Canadian businesses are just less profitable and less productive and therefore can only afford lower wages, that's fine. They will get the talent that isn't mobile for one reason or another. Some Canadians choose to stay in spite of the lower pay, some developers just aren't able to get hired at top US companies, and Canadian immigrants who aren't yet citizens are mostly locked out of the US job market.
The problem arises when Canadian business think they can keep the low pay and get people to turn down Google to stay in Toronto. If you're trying to do, say, an AI-focused startup in Canada and you think you're going to hire top people away from Google for $100,000 CAD because Trump, that's not going to happen.
So if Canada wants to have companies that aren't "X but for Canada" but rather actual global internet companies, they should expect to pay global internet company wages.
America's able to lure these workers by relying on easy investment money, not business viability.
You're pretending that there's an even playing field, and there isn't. If there were an even playing field, every firm would have left the valley decades ago to find cheaper workers.
But that's just not how it works.
Hmmm depends on where you live. In some places a large family would be quite unaffordable. The average cost of a detached house in February in Metro Vancouver was $1.76 million. Vancouver has become so unaffordable that even those with great (for Canada) six figure salaries would find it very hard to cobble together enough money to buy property.
You're more likely to require two cars in Vancouver than in Toronto as the combination of the Greater Toronto Area public transportation options cover a wider area than Vancouver's.
But sure - if we change frames then both city downtown cores are either easily walkable or extremely accessible via public transportation, hence ceteris paribus neither family (living in the downtown core) in their respective cities would require more cars than the other.
Have you actually tried that, or just hyperbolizing? Many devs in Canada net 4-5K/m. Rent in Vancouver would easily be 1.5-2.5K/m for a "large family". That's not a "very comfortable" spot.
In cities where the pay lowers so does the cost of living. Canada will never get over the exchange rate + availability of goods in America. Canada is an amazing country to live in but America is great too when you have money.
Engineer wages in Seattle were ~30-100% higher - before the Canadian dollar tanked. Now they are ~50-160% higher.
I suppose there's also Victoria, but there's no tech jobs there.
https://github.com/sendwithus/vic-startup-jobs
Victoria also has nicer weather than Vancouver (less summer rain). Direct flights to Seattle and SF.
This speaks more about the relevance of these [university level] degrees than how high dev salaries are.
But, I'm not sure it's possible for companies to do so.
I mean, first of all, in the US, outside of a few cities like NY, SV, Seattle, Bellevue, you start to see lower pay which gets closer to Canadian pay.
Appart from that, Canada just doesn't have the same market. That's the biggest difference. Most startup capitalize on the US market, and that's just easier and more accessible to do if you're US based.
In a way, Canada pays decently. You'll be very comfortable as an engineer in Canada, even with a large family. But compared to certain US cities, it's abysmal.
It's kind of crazy that in the US, a bachelor degree in CS can give you pay close to what doctors make. And a 9 month dev boot camp can have you earn similar to many university level degrees.
I'm not sure this will last forever. My point being, it's unclear if Canada's pay for tech is too low, or if some US cities pay is too high.