Canada's economy can teach the U.S. a thing or two (Why our Northern Neighbor is in fine shape)

Los Angeles Times ^ | 07/12/2010 | Don Lee

[SeekAndFind]

The United States will probably take years to recover from the global recession and credit crunch, economists say, but its northern neighbor is back in fine shape.

Whatever else they've thought about their much smaller neighbor to the north, Americans have almost never looked to Canada as a role model.

Indeed, during the long, bitter push to revamp the U.S. healthcare system, opponents repeatedly warned that, if we weren't careful, we could end up with a medical system like Canada's.

But on healthcare, as well as on such critical issues as the deficit, unemployment, immigration and prospering in the global economy, Canada seems to be outperforming the United States. And in doing so, it is offering examples of successful strategies that Americans might consider.

While the United States, Japan and much of Europe are struggling with massive fiscal deficits, Canada's financial house is tidy and secure. Most economists say it will take years for the United States to make up the 8 million-plus jobs lost during the recession, but Canada — despite its historic role as a major supplier for the still-troubled U.S. auto industry — already has recovered essentially all of the jobs it lost.

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.

Granted, Canada's problem with illegal immigration is smaller, and its economy does not match the scale and dynamic productivity of the world's largest. But on the most troubling issues of the day, the U.S. is locked in near-paralyzing political and ideological debates, while those same issues are hardly raising eyebrows in Canada.

[sinanju]

It means that H1-B imports will have to be paid the prevailing wage and won’t undercut U.S. citizens with the same skills.

[PSYCHO-FREEP]

I am not sure about that. I do not think they do however because I know several who moved there to retire and after they passed, their kids inherited their property and did not complain.

[Maneesh]

Good points except your comments on the welfare system. It is very generous in Canada and there are entire towns with generational welfare recipients. The canadian mindset is far more socialist and govt has a far bigger role in life and there is very little opposition to that from the people.

[screaminsunshine]

Simple. Canada does not have Freddie and Fannie and Barney.

[Catholic Canadian]

This article has quite a bit of BS, our immigration policy is foolish, for one.

[Alberta's Child]

Another major difference is Canada's urban structure. The country is mostly rural and smaller towns and communities.

This is an interesting point. Most of Canada's land mass is rural, but most of its population lives in urban areas. I did a quick calculation using some figures available online, and based on this information it looks like about half of Canada's entire population lives in its ten largest metropolitan areas. These include the following:

Toronto (5 million)
Montreal (4 million)
Vancouver (2 million)
Ottawa (1 million)
Calgary (1 million)
Edmonton (1 million)
Quebec (700,000)
Winnipeg (700,000)
Hamilton (700,000)
London (500,000)

That total comes to more than 16.5 million people -- out of a total population of around 33-34 million.

[MissEdie]

Maybe it’s because they don’t have obama, pelosi, and reed...

[sickoflibs]

RE :”Its approach to immigration is one example. With one of the highest immigration rates in the world, Canada has been receiving about 250,000 permanent residents annually. About one-fourth of the new arrivals gain entry through family relations, but more than 60% are admitted as “economic immigrants” — that is, skilled workers, entrepreneurs and investors. In the U.S., it's basically the reverse: Most of the 1 million-plus permanent residents received annually have been family-sponsored; only about one in seven are admitted on the basis of employment preferences. That is, Washington emphasizes bringing in family members of immigrants already in the United States. Ottawa put the emphasis on admitting those who can contribute to the economy”

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.

[PSYCHO-FREEP]

This is true of most modern countries these days. But I see the difference as still fewer ratios of people living in mass urban areas like the USA, where over two thirds of the population are crammed into small areas with little room between.

Canada's population is about half urban, half rural and the cities are spread quite far apart with many smaller and clean support communities between.

The Welfare communities you must refer to are some of the Arctic/Indian villages, as well as Churchill, Hudson Bay towns with very little economic stability. And yes, Canadian Socialism is completely in control of the population in these dependent/recipient based economies.

I may have jumped the shark by saying that welfare funds are paid back to the government to some who need it, because this is information I gathered from some Canadian friends I have in Manitoba. Please excuse my error if I am wrong here and I would appreciate the correct information If you are able. Thanks FRiend.

[N3WBI3]

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...

[woodbutcher1963]

“(lumber prices have apparently dropped significantly in recent months).”

Lumber has dropped since April because when prices climbed , due to a short term increase in demand , the mills all increased production. Demand then fell in April when the US housing credit expired.
However, Canada is much more friendly to using its natural resouces like timber. British Columbia and Alberta have been very proactive in cutting the dead beattle kill Lodgepole pine in their provences. To the contrary, the beattle kill dead timber in the US on federal lands will burn or rot before it is ever cut.

[hosepipe]

Canada has not run out of other peoples money YET...
Probably because of being under Americas military UMBRELLA...

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....

[Alberta's Child]

Very good points there. I didn’t include any mention of “welfare communities” in my post, so I’m guessing you were referring to another post on this thread. Your points about parts of Canada with a welfare culture are good, too. I would suggest that the entire region of the Maritime Provinces is heavily dependent on government support — and that includes both Canadian and aboriginal areas.

[alexander_busek]

Canada has three advantages we don't have: 1. A long, porous border with a third world country.

I think you mean: "No long, porous border with a third-world country."

Regards,

[meyer]

I think you mean: "No long, porous border with a third-world country."

Give the democrats a couple more years...

[Last Dakotan]

Canada’s finance minister;

http://www.fin.gc.ca/comment/minfin-eng.asp

[fanfan]

The Welfare communities you must refer to are some of the Arctic/Indian villages, as well as Churchill, Hudson Bay towns with very little economic stability. And yes, Canadian Socialism is completely in control of the population in these dependent/recipient based economies.

Not really, they are everywhere. Several here in Ottawa alone. Vanier, Bayshore, and City View for example. I personally have a cousin who has been on/off welfare all his life, and has around 5 kids, who all have kids, living the same way. It makes me sick. They were living in Southern Ontario, but get this.....moved to Sudbury because the payments were higher there.

[kanawa]

13% national sales tax

Nope, try 5%.

[Maneesh]

Effective July 1 there is a HST : harmonized sales tax which is the combination of the provincial sals tax (PST) and General sales tax (GST) and that is 13%. The feds keep 5% and the states keep 8 but the total is still 13. You can verify this at any govt source, I go to Canada frequently and am 100% sure of this.

[kanawa]

they don’t have to spend a nickel on defense

/facepalm

because they live next door to the largest,most prosperous,productive and vibrant market on earth.

Which makes it all the more surprising to me
that we are doing well while you're in difficulty.

Usually if you caught a cold, we got pneumonia