Canada vs. the U.S. (Which governing philosophy works better?)

The Washington Times ^ | April 8, 2004 | Richard W. Rahn

[quidnunc]

Have the Canadians found a better balance between the public and private sectors? If you listen to many in the news media and many liberal Democrats, Canada is portrayed as a more ideal society than the U.S. It is viewed as peaceful, prosperous, honest and humane, and a country the U.S. should try to emulate.

These critics in the U.S. say they do not want a European-type socialist economy but would like a relatively bigger government that provides more services than the U.S. government (and lower drug prices and free medical care) -- in short, Canada.

Is it true Canada works better than the U.S.? Let's look at the facts. Historically, Canada had been a bit poorer than the U.S. But in the 1950s, '60s and '70s Canada grew faster than the U.S. By 1976, the Canadian dollar was equal to the U.S. dollar, and real per capita incomes in the two countries and the relative size of the governments were about the same.

However, beginning in the early 1980s, Canada and the U.S. began following different economic models. Under President Reagan, the U.S. stopped the growth in the relative size of government and sharply reduced tax rates, and pursued a policy of price stability and regulatory restraint. The Canadians continued to increase their relative size of government in terms of taxing, spending, and regulation.

The result is the Canadians now have a government that spends about 40 percent of its GDP (at the federal, provincial, and local levels), while the U.S. spends about 30 percent of its GDP (at the combined federal, state, and local levels). Canada is also much more economically regulated than is the U.S. There are substantial variations in taxing and spending between the Canadian provinces as there are between the U.S. states; hence, the above numbers are rough national averages, which vary from province to province and state to state. Again, the Canadians have achieved a level of government many American Democrats say they would like.

Once the U.S. adopted Reaganomics, it began growing faster than Canada. Now, two decades later, according to the World Bank, the U. S. has a GDP per capita that is more than a third higher than Canadian per capita GDP ($34,280 for the U.S., $26,530 for Canada). These higher real incomes for U.S. citizens translate into better housing, more automobile ownership, and much higher levels of discretionary income and economic opportunity. The U. S. has also enjoyed a consistent lower level of unemployment than Canada since the mid-1980s.

-snip-

[Asclepius]

Bloody typical. I'm moving to Victoria, BC in May having just accepted a position on Vancouver Island.

Oh, well. It should be fun to watch civilization come screeching to a halt around me. Rather like a slow motion version of that DAWN OF THE DEAD remake, only with nicer zombies.

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[paguch]

We can not move toward the Canada model until Mexico assumes the position of (1. Building a military sufficient to solve all of the problems of the world. (2. Building a Drug industry that can develop all of the miracle drugs the world needs, we can then force Mexican companies to sell them to us at a discount. (3. Developing the best medical system in the world, we can send our worst cases and wealthy across the border for treatment. (4. Developing an economic system that can spin off enough activity to sustain our socialist system. (5 And lastly but not finally, Canada must agree to commit their military to defend our interests, even if we turn our back on them.

If they are that stupid and agree to these items and Mexico is prepared, we should move forward.

The idea of the U.S emulating Canada can now be buried in a 100 year time capsule and reconsidered at that time.

[MNJohnnie]

The idea of the U.S emulating Canada can now be buried in a 100 year time capsule and reconsidered at that time.

Better make that a 1000 year capsule.

[Agnes Heep]

If the U.S. went the way of Canada, who in the hell would defend Canada?

[GottaLuvAkitas1]

If the U.S. went the way of Canada, who in the hell would defend Canada?

LOL You took the words right out of my mouth!

[HoustonCurmudgeon]

Poor Canada, they could have had English government, French culture and American knowhow.
Instead they got French government, English knowhow and American culture.

[Argh]

GOOD QUESTION, Miss Heep!!

[Argh]

At least there are many beautiful gardens in Victoria. Not much consolation, I realize...

[headsonpikes]

Civilization screeched to a halt in Victoria several decades ago.

It's the home of newly-weds and nearly-deads. ;^)

[vandykelastone]

Actually, all they got is french government - and how! Sometime you all check out how much that government costs each citizen. And get some first-hand comments about their celebrated medical care. They got next to no know-how, and standing around in berkinstocks and socks whining about the Americans ain't really culture, is it. Oh. canada. Happy trails.

[BushisTheMan]

Great article. I'm looking for the e-mail I received back from a Canadian news reporter when I wrote their paper complaining about Canada giving Martin Sheen an awared.

He pointed out all the benefits of Canada over the U.S.

We exchanged several heated e-mails, but he stopped when I asked if he had real parents or did the Canada Government replace his parents? In reality I actually asked if the Government took the place of his parents when he needed his butt wiped when he was a little boy.

I'm going to send this to him. TEE HEE

[hawkaw]

He pointed out all the benefits of Canada over the U.S.

We exchanged several heated e-mails, but he stopped when I asked if he had real parents or did the Canada Government replace his parents? In reality I actually asked if the Government took the place of his parents when he needed his butt wiped when he was a little boy.

I'm going to send this to him. TEE HEE

I'm Canadian (from Kingston - close to the 10th Mountain Division in upstate New York) and hoping Bush43 holds on to power in November. I'm glad you went after him.

Please note though ... and this is somewhat interesting in that the Federal Government finally took it upon itself to fix the deficit problem and has reduced both income and corporate taxes during the middle 1990s and early 2000s. Also Provinces like Ontario made substanial tax reductions during that time frame as well. Both helped in increasing jobs here - in effect they took a page out of Ronald's handbook.

There are advantages to each system and basically, it depends more on the Province you are in rather than the country. Kinda like my Uncle who prefers to live in Texas rather than the "Peoples Republic of California" for taxation reasons.

I'm glad we have the USA beside us and thank our lucky stars we have excellent trading relationships with you guys. Because in reality, it is why Canada exists and is peaceful. Now all we got to do is put the conservatives back in power in Ottawa.

Take care.

[sergeantdave]

Canada is good for some things.

For example, Canada still sells real flush toilets, not those 19th century spitoons you gotta flush six times.

I'm thinking of setting up a business deal to buy 1,000 toilets in Canada. Then rent a semi and travel down to Dallas, Phoenix and maybe Vegas and sell them to frustrated homeowners. Calculate expenses and then tack on a $50 profit on each toilet for me and my partners.

We're gonna call our business "No More Four Flushers."

[Always Right]

I'm thinking of setting up a business deal to buy 1,000 toilets in Canada. Then rent a semi and travel down to Dallas, Phoenix and maybe Vegas and sell them to frustrated homeowners. Calculate expenses and then tack on a $50 profit on each toilet for me and my partners.

Good idea, but I don't think selling those toliets for residential use is legal in this free country of ours.

[sergeantdave]

On the contrary, my friend.

It's illegal to install them, not buy or sell them.

We simply rent a storefront and stack it to the gunwales with Canadian toilets. Then we hang a sign out front that says: "No More Four Flushers Gardening Supplies."

We unpack a half dozen toilets, dump dirt in the bowl, stick a plant in and sell the toilets as a lawn decoration. What buyers do with the toilets after they leave the store is beyond my control.

Are you interested in one?

[Agnes Heep]

O Canada, WE stand on guard for thee!

[Argh]

Thank you!

[BushisTheMan]

There are advantages to each system and basically, it depends more on the Province you are in rather than the country. Kinda like my Uncle who prefers to live in Texas rather than the "Peoples Republic of California" for taxation reasons.

Yes, I agree and I do try to remember it but sometimes, like with this reporter, it is difficult to do. He was definitely a LIB-like creature.