I worked in the poorest postal code in Canada (http://goo.gl/maps/hzKct here's how bad it gets, this intersection is called Wastings and Pain by many), it's a walk in the park compared to the bad neighbourhoods of many US cities. I've never felt like I was in the 3rd world in Canada, there are parts of the US that make you wonder...
We generally take care of our people and don't use the prison system as part of the social safety net to the degree the US does. Ironically, in Montreal in the winter, you pretty much have to kill someone to get sent to jail if you're homeless.
Also, it's not so much Canada as Stephen Harper.