Earlier that decade, Canada too was straining from years of excessive government spending that bloated the nation’s total debts, to 70% of annual economic output — a figure the U.S. is projected to approach in two years.
As with Greece, Portugal and Spain this year, Canada’s credit rating was downgraded in the early 1990s, sharply raising its borrowing costs. With its economy suffering and pressure mounting from international investors — Wall Street bankers in particular — Canadian officials slashed spending for social programs and shifted more of the cost burden to provincial governments, which almost everyone in Canada felt.
It would take several years of such tough medicine, but as Canada headed into the new millennium, the government’s total debts were shaved nearly in half, and then whittled down to a little more than 20% of gross domestic product just before the global recession began in 2008 — by far the lowest ratio among major developed countries.
With the economic downturn, Canada pumped up public spending to stimulate growth, as other nations did. Even so, its fiscal shortfall this year is projected at $33 billion, comfortably below the 3%-of-GDP threshold that economists consider a manageable level of debt.
Washington’s deficit this fiscal year is estimated by the Congressional Budget Office at $1.35 trillion — or 9.2% of projected GDP.
The United States’ larger size — its population and economy are roughly 10 times those of Canada — makes direct comparisons difficult. And many Canadians readily acknowledge that American entrepreneurship and productivity are enviably stronger.
But having learned to tighten their belts in the 1990s, Canadians have little sympathy for U.S. consumers who pile debt onto their credit cards and homes.
Well, the former Canaduh doesn’t have Bwwannny and Chris screwing up their banking system. It doesn’t have a Marxist Zer0 fearless leader waging war on the country, doesn’t have a large military to feed, likely has a reasonable balance of payments/trade, is willing to drill, baby, distill, etc.
1. A long, porous border with a third world country.
2. They actually WILL extract and use their natural resources.
3. We provide for them something along the lines of $60 BILLION a year in military aid, since they have no real standing military and count on us to provide for their safety.
Canada isn't just substantially smaller than the U.S. in terms of population (the U.S. has about 10x more people), but the Canadian economy is very different from ours. They are very resource-oriented and production-oriented up there, with so much of their economy tied to foreign trade. I may be wrong about this, but I believe the single biggest factor in Canada's relatively strong economy is that prices for all kinds of commodities that are produced in abundance in Canada (oil being a good example) have risen dramatically in the last few years. I'm not sure this can go on indefinitely, as high prices ultimately crimp demand and may result in declining economic fortunes in various business sectors (lumber prices have apparently dropped significantly in recent months).
Things change, and our thing will start changing after the November elections. There will be belt tightening here, but also a loosening of the noose around growth’s neck. Canada is turning around to head the right direction politically and economically, but they will experience a horrible cultural rot, if they don’t curtail Islamic immigration.
Its impressive how the LAT makes no mention of how Canada is the largest supplier of oil to the United States. That is a unique phenomena of the past decade and a brilliant byproduct of great foreign policy moves by Bush.
More importantly, the development of fossil fuel as a product can propel an economy with tens of billions of dollars in economic activity .
But the LAT leaves that out rather deliberately.
Our northern neighbors are doing just ducky at least partially because 1) they don’t have to spend a nickel on defense and 2) because they live next door to the largest,most prosperous,productive and vibrant market on earth.
Healthcare in Canada is a joke. We are heading that way as well with Dr. Goodwrench in the WH.
This article has quite a bit of BS, our immigration policy is foolish, for one.
Maybe it’s because they don’t have obama, pelosi, and reed...
We admit those that can go on the US dole versus contributing. Every young immigrant (came in as a child) I know of got free college in Maryland and gives their loyalty to the welfare state, job or no job. Their parents came in with no education, naturally.
What tripe!
“Meanwhile, as Americans continue their grueling battle over immigration, Canadians have united behind a policy that emphasizes opening the door to tens of thousands of skilled professionals, entrepreneurs and other productive workers who have played an important role in strengthening the Canadian economy.”
Yea the US is having a problem is software engineers, lawyers, and doctors shuffling across the sourthern border...
In a real world Canada couldn't afford socialism..
Their exports support their socialism as does Finlands, Swedens and Norways..
American democrats are for ratcheting up socialism and killing american exports..ON PURPOSE..
Thereby not feeding the goose and stealing the eggs..
The American goose is getting skinny and producing fewer and smaller eggs.. Soon the republicans will take over so there will be somebody to blame it all on..
A new republican Congress(2010) will find a way to NOT REDUCE THE FEDERAL GOVERNMENT, NOT reduce taxes... AND NOT prune the federal government down to manageable size....
Canada’s economy is sound largely because of Free Trade, the Goods and Services tax (GST - essentially a flat tax on everything you buy) and because our banks are far more conservative. All of these policies were enacted by a Conservative government (Mulroney in the 1984-1993), and Canada is currently run by a conservative government (Harper since 2006). The Liberals were against Free Trade and the GST and ran campaigns against both policies, but like the hypocrites they are, after making them highly unpopular policies they managed to win in 1993 running against the GST, yet they still kept both policies in place. Add to that our vast resources with massive oil and natural gas reserves, and it isn’t too tuff to figure it out. We sell more oil to the United States than Saudi Arabia does… We’ve got money.