Thursday, January 13, 2011

Can Any Good Thing Come out of Canada?

Canada gets more than it's share of ribbing from we Americans, and much of it rightly so. But it seems as though there is something good we can learn from Canada. In John Stossel's column this week, he talks about how Canada dug itself out of a deficit hole, not by huge increases in taxation (an option favored by our Democrats), but by cutting government spending.

Basically here are the stats:

Canadian Debt:
1994: 67% of GDP
2011: 30% of GDP
Percent of GDP spent by Canadian Government:
1994: 17.5%
2011: 11.3%

United States:
2011 Debt Held by the Public: 62% of GDP
2011 Percent Spent by Federal Government: > 40%!

Wow! I don't know how we haven't already crashed! It's coming, and sooner than we think. I never thought I'd be envious of Canada, but after our politicians (of both stripes) have so utterly failed us, Canada is looking better and better.

As to Stossel's skepticism about Boehner and the Republicans making the change, I share that skepticism, plus some. If the politicians are going to get anything significant done, the only way it will happen is if we citizens keep their feet to the fire.

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