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Should Advocates of Small Government Now Escape to Canada?
Townhall ^ | 09/25/2012 | Daniel Mitchell

Posted on 09/25/2012 12:00:13 PM PDT by SeekAndFind

Back in 2010, I wrote about the Free State Project, which is based on the idea that libertarians should all move to New Hampshire and turn the state into a free market experiment.

I was impressed when I spoke at one of their conferences and gave them a plug, but more recently I’m running into people who are so discouraged about America’s fiscal outlook that they’re thinking of moving to some other nation.

Wealthy people seem to prefer Switzerland and the Cayman Islands, while middle-class people mostly talk about Australia and Latin America (mainly Costa Rica or Panama).

But maybe Canada is the place to go. It’s now the 5th-freest economy in the world, while the United States has dropped to 18th place.

I’m a big fan of Canada’s fiscal reforms. On several occasions, I’ve explained how Canadian lawmakers boosted economic and fiscal performance by restraining the growth of government spending.

Indeed, Canada is my main example when I explain why the United States should follow my Golden Rule of fiscal policy.

By allowing the private sector to grow faster than the government, Canada has also been able to implement big tax cuts. Heck, they even privatized their air traffic control system.

Canada’s reforms got some positive attention in today’s Wall Street Journal from Mary Anastasia O’Grady.

Former Canadian Prime Minister Paul Martin has a stern warning for the U.S. political class: Get real about the gap between federal revenues and spending, or get ready for disaster. Mr. Martin knows of what he speaks. In 1993, when he was Canada’s finance minister, his country faced a daunting fiscal crisis. …When the Liberal Party government of Prime Minister Jean Chrétien took power in October 1993, Mr. Martin was charged with pulling his nation out of the fiscal death spiral. He did it with deep cuts in federal spending over two years that amounted to 10% of the budget, excluding interest costs. Nothing was spared. Even federal transfers to the provinces to fund Canada’s sacred national health-care system got hit. The federal government also cut and block-granted money for welfare programs to the provinces, giving them almost full control over how the money would be spent. In the 1997 election, the Liberals increased their majority in parliament. The Chrétien government followed with tax cuts starting in 1998 and one of the largest tax cuts—both corporate and personal—in the history of the country in 2000. The Liberals won again in 2000.

In the U.S., by contrast, we’ve degenerated to the point where the central bank is now financing a disturbingly large share of the deficit.

Market discipline doesn’t exist in Washington, which has the “privilege” of an accommodating central bank issuing the world’s reserve currency. The big spenders don’t need to pay attention to pesky numbers. …the Fed bought 77% of all new federal debt last year. It is doing so at rock-bottom interest rates. By holding the short-term fed-funds rate low while it buys up long-term securities, Mr. Bernanke is helping our political class ignore the real cost of rising federal indebtedness.

This doesn’t mean we’re at near-term risk of becoming another Argentina or Zimbabwe, but I definitely don’t like the trend. No wonder the Canadian dollar is now stronger than the dollar.

But that’s a separate issue. This post is mostly about fiscal policy and Canada’s outlook.

In the short run, Canada’s a good bet. Reforms have been implemented, and they happened under a left-of-center government and have been continued more recently by a right-of-center government.

We’ve had bipartisanship in the United States as well, but the wrong kind. For the past 12 years, we’ve endured big spenders from both parties. No wonder Canada now ranks higher.

In the long run, though, I’m not sure Canada’s the right choice. I joke about the cold weather, but I’m more concerned about the fact that the burden of government spending remains too high, consuming about 42 percent of economic output. And even though Canada has implemented some pension reforms, it has a government-run healthcare system that will become a greater burden on taxpayers as the population ages.

This doesn’t mean I’m optimistic about the long-run outlook in the United States. Yes, we can fix our fiscal problems if we cap the growth of spending and implement entitlement reform to address the long-run problem, but I’m not holding my breath expecting those policies.

So I’m back to my original plan of finding somebody to give me millions of dollars so I can escape to the Cayman Islands.

P.S. If you’re thinking of sending me a big check, give me some advance notice. To avoid nasty headaches with the IRS, I should go to the Cayman Islands first and then have somebody give me millions of dollars.

P.P.S. On a more serious note, here’s my video highlighting nations – including Canada – that successfully restrained government spending.

P.P.P.S. The Canadian government also deserves praise for resisting global schemes to raise taxes on the banking sector.

P.P.P.P.S. But there are bad people in Canada, such as the politician who escaped to the U.S. for surgery while leaving ordinary Canadians stuck in long waiting lines.

P.P.P.P.P.S. To close on a light note, here’s a satirical article about American leftists trying to escape to Canada after the 2010 elections.


TOPICS: Business/Economy; Canada; Culture/Society; Editorial; Government; News/Current Events
KEYWORDS: canada; smallgovernment

1 posted on 09/25/2012 12:00:20 PM PDT by SeekAndFind
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To: SeekAndFind

In a land mass of roughly 4000x2000 miles, I’m sure you can find a nice corner to hole up in with your pals. “Going Galt” isn’t that hard once you decide to. You can disassociate from most of the system here with little effort. Going elsewhere won’t improve things much freedom-wise; few countries don’t consider outright socialism the accepted norm.


2 posted on 09/25/2012 12:06:53 PM PDT by ctdonath2 ($1 meals: http://abuckaplate.blogspot.com)
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To: SeekAndFind

Appreciate your post.

If Baraq wins in Nov, the topic of “bolt or revolt” will be a serious one here on FR.


3 posted on 09/25/2012 12:10:55 PM PDT by nascarnation (Defeat Baraq 2012. Deport Baraq 2013)
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To: SeekAndFind

Talk to any Canadian and they’ll tell you there’s not much small government up there.

The split of the C-CRAP Conservatives from the Tories was necessary, but it gave Liberals a free hand for over a decade to build the government (which was already bigger than ours) as BIG as they wanted.

PM Harper is a very smart guy who is doing a fine job, but it’s gonna take decades to undo all that.


4 posted on 09/25/2012 12:20:04 PM PDT by Buckeye McFrog
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To: nascarnation

If one where going to flee, Canada would be a wise choice.

The thing is that the global collapse is coming no matter what and the last thing you want to be is a stranger in a strange land When it happens. Being a minority would make that worse by many times over.

Me personally, I’m an American and they’ll have to kill me where I stand because I’m not going anywhere.


5 posted on 09/25/2012 12:21:12 PM PDT by cripplecreek (What does it profit a man if he gains the whole world but loses his soul?)
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To: SeekAndFind

what a bunch of drivel..

the canadians come over here in droves to buy stuff, not because of the currency exchange rates, but because of the significant tax savings in buy here and taking it home..

they come over in motor homes, with huge trailers, and large trucks and just fill ‘em up...

try to drive through port huron on a weekend, and count the number of american versus canadian license plates..

they have one of the highest tax rates in the world...


6 posted on 09/25/2012 12:24:16 PM PDT by joe fonebone (The clueless... they walk among us, and they vote...)
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To: SeekAndFind
He did it with deep cuts in federal spending over two years that amounted to 10% of the budget, excluding interest costs. Nothing was spared.

This doesn't mean we’re at near-term risk of becoming another Argentina or Zimbabwe

10%? We borrow 40% of what we spend today.

We are more likely to end up like Japan, 20 years of economic stagnation and loss of standard of living.

Not to mention the dramatic loss of freedom for us and our children.

sschu

7 posted on 09/25/2012 12:24:38 PM PDT by schu
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To: cripplecreek

One strong possibility I’m following is somewhere in the Caribbean.

As Obamacare clamps down, the best and brightest of the medical profession will head offshore, and set up medical clinic/spas for the US upper class who can afford to pay for their own care and want something better than the govt offers.


8 posted on 09/25/2012 12:26:11 PM PDT by nascarnation (Defeat Baraq 2012. Deport Baraq 2013)
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To: cripplecreek; nascarnation

What about Singapore?


9 posted on 09/25/2012 12:41:43 PM PDT by 2ndDivisionVet (You cannot invade the mainland United States. There would be a rifle behind every blade of grass.)
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To: SeekAndFind

I’m hoping that conservative talk radio has plans to move overseas and continue to broadcast via short wave as if there is a second Obama term all free speech will be banned.


10 posted on 09/25/2012 12:41:49 PM PDT by The Great RJ
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To: 2ndDivisionVet

Singapore would be great if you don’t mind being the first to die when the global collapse hits. Those who are different will be the first targets of the angry mobs.


11 posted on 09/25/2012 12:45:14 PM PDT by cripplecreek (What does it profit a man if he gains the whole world but loses his soul?)
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To: SeekAndFind

I ain’t “fleeing” anywhere!


12 posted on 09/25/2012 12:55:12 PM PDT by stable
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To: nascarnation

Canada and/or the free states bordering Canada (New Hampshire, Idaho, Montana, North Dakota) would make good bases from which to “bolt AND revolt.” Texas, Arizona and the gulf states, too. What we need is a state whose governor and legislature tell the feds to stop violating the constitution, and confronts it. Texas is the only one that can lead such a movement.


13 posted on 09/25/2012 1:06:53 PM PDT by Defiant (If there are infinite parallel universes, why Lord, am I living in the one with Obama as President?)
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To: 2ndDivisionVet

Singapore is a very prosperous market-based economy, but there is very little actual “freedom” there. A virtual dictatorship with Michael Bloomberg-style nanny rules writ large.


14 posted on 09/25/2012 1:38:27 PM PDT by Buckeye McFrog
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To: SeekAndFind

There is nowhere else to go.

USA was the last best hope.


15 posted on 09/25/2012 2:19:44 PM PDT by GeronL (http://asspos.blogspot.com)
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To: 2ndDivisionVet
What about Singapore?

Certainly a possibility, but a long ways away from the US.

I'm sure if Baraq wins in Nov, we'll spend a lot of time here on FR with discussion and fact finding.

16 posted on 09/25/2012 2:41:49 PM PDT by nascarnation (Defeat Baraq 2012. Deport Baraq 2013)
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To: Defiant
Texas has more people on Medicaid than there are people in Iowa, Arkansas, or Mississippi.

Where do you ship all of them?

17 posted on 09/25/2012 2:43:52 PM PDT by nascarnation (Defeat Baraq 2012. Deport Baraq 2013)
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To: SeekAndFind
I have a better Idea. Stand, Fight and

WIN


18 posted on 09/25/2012 2:56:38 PM PDT by WOSG (REPEAL AND REPLACE OBAMA. He stole America’s promise!)
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To: GeronL

http://www.youtube.com/watch?v=tR38PTzfnQg&feature=related


19 posted on 09/25/2012 2:56:48 PM PDT by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: Elsie

lol


20 posted on 09/25/2012 3:00:06 PM PDT by GeronL (http://asspos.blogspot.com)
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To: The Great RJ
I’m hoping that conservative talk radio has plans to move overseas and continue to broadcast via short wave as if there is a second Obama term all free speech will be banned.

I remember many times Rush eluded to this during the Clinton Era and Glenn Beck even touched on this too. I can see shortwave radios coming back into vogue as well. I'm an amateur radio operator so I'm into shortwave and police scanner listening.
21 posted on 09/25/2012 3:49:26 PM PDT by Nowhere Man (June 28th, 2012, the Day America Jumped The Shark.)
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To: Defiant
Canada and/or the free states bordering Canada (New Hampshire, Idaho, Montana, North Dakota) would make good bases from which to “bolt AND revolt.” Texas, Arizona and the gulf states, too. What we need is a state whose governor and legislature tell the feds to stop violating the constitution, and confronts it. Texas is the only one that can lead such a movement.

You better do it fast, because Hispanics are about to become the largest group in the state, at a much faster pace than originally predicted, and the Democrats have been kissing up to them like nobody's business. La Raza is doing quite well here (even the Governor kisses up to them). There may only be one or two more presidential elections after 2012 where Texas votes Republican.

Texas already has a lot of RINO politicians in state politics, Houston elected a lesbian mayor, Dallas elected a lesbian Sheriff, things are heading downhill in a hurry.

We do have some advantages - lots of resources and money flowing in from other countries though - our Governor went over to China and convinced one of the Chinese national oil companies to spend billions buying into Texas oil fields, creating a lot of jobs, and the Mexicans find that shopping over here and taking it back to Mexico is a lot safer than shopping in Mexico.
22 posted on 09/25/2012 4:03:31 PM PDT by af_vet_rr
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To: SeekAndFind

I hate being cold.


23 posted on 09/25/2012 4:08:07 PM PDT by tnlibertarian (Government's solution to everything: Less freedom.)
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To: SeekAndFind

I like Virginia just fine, thanks. It’s already a nice place. And it’ll still be a nice place after “the divorce.”

The only question in my mind is whether the divorce happens after a long attempt at reconciliation or is a relatively quick parting of the ways.

Canada is c-c-cold.


24 posted on 09/25/2012 4:36:45 PM PDT by RKBA Democrat (Arms really ARE for hugging!)
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To: WOSG

“I have a better Idea. Stand, Fight and WIN”

Please define a “win” for us.


25 posted on 09/25/2012 4:38:05 PM PDT by RKBA Democrat (Arms really ARE for hugging!)
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To: 2ndDivisionVet

“What about Singapore?”

What about it? Very prosperous, small country with a very low birthrate and without the ability to defend itself if push comes to shove. It also has zero political freedom, and no gun rights.


26 posted on 09/25/2012 4:39:51 PM PDT by RKBA Democrat (Arms really ARE for hugging!)
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To: GeronL

“USA was the last best hope.”

It still is. Although perhaps not in the same political construct.


27 posted on 09/25/2012 4:41:50 PM PDT by RKBA Democrat (Arms really ARE for hugging!)
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To: stable

“I ain’t “fleeing” anywhere!”

I’m of the same mind. But staying put doesn’t mean settling for hind teat.


28 posted on 09/25/2012 4:44:07 PM PDT by RKBA Democrat (Arms really ARE for hugging!)
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To: Defiant

“Texas is the only one that can lead such a movement.”

They don’t need to lead much of anything. Just do the electoral math of a post-TX rest of the United States.


29 posted on 09/25/2012 4:48:08 PM PDT by RKBA Democrat (Arms really ARE for hugging!)
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To: WOSG

To all those who might think of moving to Canada,
I say Fine, go ahead.
Well what are you waiting for?
You’re blocking my berm.


30 posted on 09/25/2012 4:50:51 PM PDT by tet68 ( " We would not die in that man's company, that fears his fellowship to die with us...." Henry V.)
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To: RKBA Democrat

“My idea of American policy toward the Soviet Union is simple, and some would say simplistic. It is this: We win and they lose. What do you think of that?” -Ronald Reagan
http://www.commandposts.com/2011/02/we-win-they-lose/

My idea of American policy toward the leftists that run the White House, the Senate, the media, and academia is simple, and some would say simplistic. It is this: We win and they lose. What do you think of that?

Winning starts with removing Obama and repealing Obamacare. What do you think of that?


31 posted on 09/25/2012 5:22:58 PM PDT by WOSG (REPEAL AND REPLACE OBAMA. He stole America’s promise!)
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To: WOSG

Removing hussein and obamneycare would be a small first step. What next?

Winning in foreign policy would mean what? You’re not defining the end result very clearly.


32 posted on 09/25/2012 5:43:06 PM PDT by RKBA Democrat (Arms really ARE for hugging!)
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To: cripplecreek

>>>The thing is that the global collapse is coming no matter what and the last thing you want to be is a stranger in a strange land When it happens. Being a minority would make that worse by many times over.

Me personally, I’m an American and they’ll have to kill me where I stand because I’m not going anywhere.<<<

I agree. Becoming a refugee is not an appealing prospect. And the truth is that there really is no place to run. God help us.


33 posted on 09/25/2012 10:04:52 PM PDT by redpoll
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To: SeekAndFind
Canada has lots of socialism in place but is looking better and better. It has 8 huge advantages over America
  1. no resentful, reparations demanding population descended from slaves making once great cities uninhabitable one by one. Detroit, Gary, Camden and Birmingham being examples.
  2. Canada does not have narco-state Mexico on its border sending drugs and illegal aliens into it
  3. Canada did not allow itself to get into a real estate bubble, did not allow their banksters to make that bubble worse
  4. Canada has a skills and education based immigration policy. Our legal immigration is heavily tilted towards entrants from the third world and towards family reunification. Meaning that if illegal alien Julio from Nicaragua attains legal status via the scumbag immigration attorneys (many non-USA born themselves) then attains US citizenship. Then he can bring in all kinds of family here for that BS known as reunification
  5. In general the cold keeps out the riff-raff  
  6. Canada's economy depends on natural resources extraction. The eco-wackos are pushed aside. Canada is lot freer than USA as far as oil and gas industry, as far as coal mining (China buys coal from them shipped out of BC ports) as far as all mining be it gold, silver, nickel, copper, what have you
  7. Huge hydro-electric resources. Quebec makes so much hyrdo-power they ship some to our New England states
  8. Canada's largest gold mine is about to open. Called Detour Gold in northern Ontario. I am sure they got that mine running a lot faster than they could get a similar size gold mine running in America due to the eco-wackos
  9. They have no imported from Kenya, communist Muslim president or Prime Minister

34 posted on 09/25/2012 11:05:15 PM PDT by dennisw (Government be yo mamma - Re-elect Barack Obama)
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To: redpoll
God help us.

Just why should HE?





Are you still killing your unborn?

-- GOD


 

35 posted on 09/26/2012 2:38:10 AM PDT by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: nascarnation
As Obamacare clamps down, the best and brightest of the medical profession will head offshore, and set up medical clinic/spas for the US upper class .....

Let me see if I understand you.

You want to follow the big-rich offshore -- why?

Are you going to work for them down there? They'll want locals, cheap locals. Or do you really want to live in a cinderblock house with a dirt floor? That's why Ford moved one big plant to Torreon, Mexico, in the early 90's: Business Week told us how their board members were, um, pleasuring themselves under the table at the reality that they had a guy who lived like that with his wife, mom, two kids and another in the oven, welding for them for $75/week. His "bennies" were taco lunch and car fare. Whoooo--EEE!! Dirt-poor skilled labor, working for free! Viva Mexico!!

So, you want a thick slice of that for yourself, huh?

You want to be like the shop girls on Rodeo Drive who can't afford to buy where they work? The Ferrari salesman who drives an '85 Audi Quattro because it's a "classic"?

Those clinics won't be treating you. That's the whole point, their whole raison d'etre. Guys like you drag their averages down. When Donald Trump checks in with a boo-boo, on the other hand, they treat him and then retire to the back office to fire up a Macanudo.

Remember, the whole idea of "trickle down" shuts down the minute the new accountant settles into his job. He's in charge of anti-trickle, just like Henry Clay Frick was for Andrew Carnegie, back in the day. Thousands for armed Pinkertons, but we'll make our workers pay for them with the 50% wage cut. Yeah, go work for Frick.

36 posted on 09/26/2012 8:22:52 AM PDT by lentulusgracchus
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To: lentulusgracchus

OK, maybe I’ll move to Cuba and help them fix 55 Chevys.....


37 posted on 09/26/2012 10:59:58 AM PDT by nascarnation (Defeat Baraq 2012. Deport Baraq 2013)
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To: Clive; exg; Alberta's Child; albertabound; AntiKev; backhoe; Byron_the_Aussie; Cannoneer No. 4; ...
Nice reversal from the scum we welcomed in the 1960s.

Canada Ping!


38 posted on 09/26/2012 12:05:02 PM PDT by Squawk 8888 (True North- Strong Leader, Strong Dollar, Strong and Free!)
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To: lentulusgracchus

The Men Who Built America - Series Premiere
Tue., Oct. 16 at 9/8c
http://www.history.com/shows/men-who-built-america/articles/about-men-who-built-america
John D. Rockefeller, Cornelius Vanderbilt, Andrew Carnegie, Henry Ford and J.P. Morgan rose from obscurity and in the process built modern America. Their names hang on street signs, are etched into buildings and are a part of the fabric of history. These men created the American Dream and were the engine of capitalism as they transformed everything they touched in building the oil, rail, steel, shipping, automobile and finance industries. Their paths crossed repeatedly as they elected presidents, set economic policies and influenced major events of the 50 most formative years this country has ever known. From the Civil War to the Great Depression and World War I, they led the way.

Using state of the art computer generated imagery that incorporates 12 million historical negatives, many made available for the first time by the Library of Congress, this series will bring back to life the world they knew and the one they created. The event series will show how these men took a failed experiment in democracy and created the greatest superpower the world has ever seen. We see how their historic achievements came to create the America of today.

******I will be watching this for sure!!!


39 posted on 09/26/2012 1:09:50 PM PDT by dennisw (Government be yo mamma - Re-elect Barack Obama)
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To: dennisw
"The event series will show how these men took a failed experiment in democracy and created the greatest superpower the world has ever seen. We see how their historic achievements came to create the America of today." [Emphasis added.]

Oh, so that's what De Tocqueville's Jacksonian America was? Well, it guess it was unsatisfactory -- if you were a self-consequent, ruthlessly self-aggrandizing prig like Lewis Tappan, John Forbes, Nicholas Biddle, or John D. Rockefeller Sr.

Sounds like someone is trying to lay a pseudointellectual foundation for a pitch for totalitarian fascism, based on Great Man theories about American history. "You didn't build that -- Henry Ford did."

40 posted on 09/26/2012 2:11:28 PM PDT by lentulusgracchus
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