Because exchange rates and cost of living are two separate things.
The Canadian dollar is worth 2% more, meaning for one Canadian dollar you get USD$1.02. On the other hand, stuff in Canada is more expensive no matter whether you're paying in CAD or USD. Exchange rate is to do with currencies, independent of location; cost-of-living is to do with location [pretty much] independent of currency.
To see a much more drastic difference in cost of living, try going somewhere like Siam^WThailand.
Maybe someone else can fill in the details on the factors that influence exchange rate and cost of living.
The Canadian dollar is worth 2% more, meaning for one Canadian dollar you get USD$1.02. On the other hand, stuff in Canada is more expensive no matter whether you're paying in CAD or USD. Exchange rate is to do with currencies, independent of location; cost-of-living is to do with location [pretty much] independent of currency.
To see a much more drastic difference in cost of living, try going somewhere like Siam^WThailand.
Maybe someone else can fill in the details on the factors that influence exchange rate and cost of living.