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John F. Kennedy Liberal Democrat

John F. Kennedy Liberal Democrat
Source: U.S. Senator John F. Kennedy in 1960

Sunday, May 4, 2014

Bloomberg News: Video: Rip Up the Script: "Why Canada's Middle Class Beats America's"



Strange title for an over two-minute video, two-minutes and seventeen seconds to be precise, that spends only twenty seconds talking about the Canadian middle class. Most of this video was about the decline of the American middle class, which should've been reflected in the title.  The last twenty seconds discusses why Canada wasn't hurt as much by the Great Recession as the U.S.

Why Canada wasn't hurt as much by the Great Recession as America and Europe?  Canada is larger than America geographically but has one-ninth the population. They have thirty-five million people v.s. three-hundred and ten million. Canada is also energy independent, sending energy to the U.S. via the Keystone Pipeline. They don't have the debt and deficit issues that the U.S. or a lot of Europe has and they tax business at a much lower rate.  Canada has a lot of economic resources with a fairly small population and a lot of land.  Physically, it is  the second largest country in the world, trailing only the Russian Federation.

Germany's economic system is similar to both Canada's and America's.  It has a robust private sector and a strong safety net.  It has modern infrastructure and taxes business's lower than the U.S. They have managed to keep their debt to GDP ratio down throughout the Great Recession.

The U.S. is trying to figure out how to become energy independent, how to finance and rebuild a crumbling infrastructure, educate more Americans and improve our 39th in the world ranking in education.  We have to move millions of Americans out of poverty.  Our poverty levels are roughly twice that of the rest of the developed world.  This requires improvements in education and job training. We need  to get our national debt stabilized and under control.