Category: Canada

Canada is Not Part of the U.S.A.

Mexican Pres. Calderon, Obama, Canadian P.M. Harper at the White House          Mexican Pres. Calderon, Obama, Canadian P.M. Harper at the White House

Reported in the Toronto Star, “Ottawa has no choice but to aggressively pursue other export markets to safeguard Canada’s economy in case Keystone is rejected, PM says in Washington.”

Let’s be honest. The Keystone oil was not destined for consumption in the United States. The benefit to the USA is that there will be construction jobs for laying the pipeline, maintenance jobs for keeping the oil flowing without any leaks, and refinery jobs on the Gulf of Mexico.

The additional major benefit is that if there was an oil embargo the United States would have access to the supply.

Canada has the benefit of many natural resources. The Canadian government’s first interest is in the well being of its own people. As it should. Exporting their resources has enabled that country to thrive. For some reason Americans think that Canada owes its total existence to them and should respond to American wishes and desires at Canadian peril. Despite that belief, Canada is not part of the U.S.A.

Canada Rising

Whether you fly into Canada or drive into Canada from the United States you will hardly notice the differences.  With the exception of Quebec most Canadians speak English.  They watch most of the television shows broadcast in the United States, their dress and behavior is similar to Americans. 

Some of the most famous Americans are really Canadians.  Alex Trebek, host of the television game show “Jeopardy”; Justin Bieber, pop/R&B singer; Ali Velshi, television journalist best known for his work on CNN; Pamela Anderson (actress, animal activist, former pinup); Alexander Graham Bell, He invented the telephone; etc.

Canada has a population of just over 33 million people.  That number is less than the total number of people living in California.

The Canadian economy created 28,000 jobs last month (June 2011).  Economists had expected an overall increase of 10,000 jobs.  By comparison,U.S.employers added just 18,000 workers in June.  Our population is over 300 million people.

Canada’s economy expanded at a 3.9% annualized pace in January through March, the fastest clip in a year.  Compare that number with the revised U.S. growth of 0.4% in the United States for January to March and 1.3% in the second quarter.

What are the differences between these two nations that enables Canada to grow at a faster pace?

According to Statistics Canada, the equivalent of the United States bureau of Bureau of Economic Analysis, businesses replenished inventories and boosted investment spending and exports rose while consumer and government spending stalled.  So they do have some ofAmerica’s problems.

Canada is experiencing a construction boom that is a combination of government infrastructure and private enterprise. Toronto, the largest city in the country has projects in process throughout the metropolitan area.  Pricewaterhouse Coopers is forecasting a five year boom thanks to Oilsands, hydro projects and transportation.

The cost of homes inToronto’s central city area is comparable to Los Angeles and New York City.  Demand is strong unlike the United States.  Down payments required are 20% and there is no deduction on income tax for the interest payments.

The income tax structure is similar to the U.S. but they also have a national value added tax in addition to a provincial sales tax that results in a total tax on all purchases of approximately 12% (varies from province to province).

Canada is not likely to obtain the GDP or the power of the United States.  However, the United States ought to function more successfully than Canada simply because of its size.  Politics does make a difference.