People in the U.S. often think of Canada as this Socialist/Communist country to the north, when in fact, it’s a Capitalist Social-Democracy. One could say that Canada is more “free market” than the U.S., depending on how you measure freedom.
The core to Canadian markets is that it decentralizes power. As a Democracy, it not only decentralizes political power, but decentralizes economic power as well. Not because they are a bunch of welfare bums (most Canadians are employed – unlike the U.S.) but because they realized that Thomas Jefferson was right – centralized power of any means is dangerous. Canada decentralizes economic power in the public interest. Looking at the Toronto Stock Exchange, it doesn’t seem like any Canadian Capitalists are going broke because of it.
And there are two things that the staunchest Canadian Conservative refuses to give up: their free health care, and their right to negotiate their wages in a free labor market. This can be represented by the unionization rate:
So while union rates have gone down in Canada, they are still a political force to be reckoned with.
While most Canadians are disappointed with their economy, the average Canadian is still doing better than the average American in GDP per capita. All this “Socialism” has managed to keep Canada fairing better than the U.S. by almost 2:1 consistently over time.
Today is Canada’s Independence Day – Canada Day. Where in 1867, after the U.S. fought the bloodiest war in its history over slavery, a Canadian Scotsman politely asked England for Independence, and Queen Victoria said yes.
Welcome to Canada-stan.