Canada as Socialist Utopia
10/3/11 07:55Marginal Revolution posted an article recently about wage stagnation in Canada. Cowen argues "This is one reason why I do not adhere to some of the progressive or "class struggle" explanations of relative stagnation in median income growth. Canada is not ruled by the so-called Republican Right." Ah, yes, the old stereotype of Canada as market hater, so conservative economic policies couldn't be responsible for this kind of wage stagnation. But consider the facts. Canada was ruled by Mulroney's Conservatives from 1984-1993. The Conservatives were a pretty right wing party, Mulroney and Reagan were very close, (Mulroney gave one of the few eulogies at Reagan's funeral,) and together they ushered in a central free trade deal. The Liberals took over after poor Kim Campbell's reign and while they were called "Liberal" they oversaw some budget cutting that was anything but progressive, it's seen as a model by the conservative Fraser Institute after all. So, it's not quite so easy to dismiss "free market" economic policies as the reason for the wage stagnation that occurred over that time.
In fact, while Canada is often portrayed as being a land of communist pinkos, the reality is quite different in terms of economic policy. Canada does, in my opinion, have a stronger sense of obligation for addressing economic injustice (and is actually more willing to embrace liberty with respect to various social issues), but that doesn't, by any stretch of the imagination, translate into a planned economy. The evidence is easy to find: e.g., Canada and US gov't spending make up roughly the same proportion of respective GDP, Canada has lower corporate taxes, etc. People are often led to the "socialism" assumption by the single payer health care system, although even there, the right kind of government intervention has actually realized a far more efficient market mechanism than has the patchwork approach implemented in the US.
x-posted to my journal
In fact, while Canada is often portrayed as being a land of communist pinkos, the reality is quite different in terms of economic policy. Canada does, in my opinion, have a stronger sense of obligation for addressing economic injustice (and is actually more willing to embrace liberty with respect to various social issues), but that doesn't, by any stretch of the imagination, translate into a planned economy. The evidence is easy to find: e.g., Canada and US gov't spending make up roughly the same proportion of respective GDP, Canada has lower corporate taxes, etc. People are often led to the "socialism" assumption by the single payer health care system, although even there, the right kind of government intervention has actually realized a far more efficient market mechanism than has the patchwork approach implemented in the US.
x-posted to my journal
(no subject)
Date: 10/3/11 13:09 (UTC)(no subject)
Date: 10/3/11 13:11 (UTC)Or to dump their outlaws into.
(no subject)
Date: 10/3/11 13:23 (UTC)(no subject)
Date: 10/3/11 13:53 (UTC)(no subject)
Date: 10/3/11 14:02 (UTC)(no subject)
Date: 10/3/11 14:07 (UTC)Japan and Turkey form an alliance to attack the US. Poland becomes America’s closest ally. Mexico makes a bid for global supremacy, and a third world war takes place in space. Sounds strange? It could all happen. . . (http://www.newstatesman.com/north-america/2009/08/power-china-world-japan-poland)
Book: The Next 100 Years (http://www.stratfor.com/next100years).
Author: George Friedman (http://en.wikipedia.org/wiki/George_Friedman).
You must've heard about him.
(no subject)
Date: 10/3/11 14:47 (UTC)(no subject)
Date: 10/3/11 16:30 (UTC)Star Trek
Date: 11/3/11 00:15 (UTC)Re: Star Trek
Date: 11/3/11 01:39 (UTC)(no subject)
Date: 10/3/11 16:29 (UTC)Nah, the next big war the USA would be likely to get into is another Mexican intervention. My preferred vision of the future, though, is this one:
http://www.dunenovels.com/
(no subject)
Date: 11/3/11 08:23 (UTC)(no subject)
Date: 10/3/11 16:28 (UTC)(no subject)
Date: 10/3/11 13:59 (UTC)It's generally fueled by ignorance. Americans don't know much about Canadians, because there's no need to. It's a stable relationship built over a very long time and doesn't require most people to worry about it or even pay attention to it. That's great almost all of the time, but it does leave public perception open to some whackjob on Fox "News" talking about fictional 9/11 terrorists coming from Canada or the socialist government or what have you. Since people don't know much about it and there isn't an effective counter PR job from the
Government of CanadaHarper Government, it tends to stick.But it's okay, because we'll still take your money at parity. ;)
(no subject)
Date: 10/3/11 14:02 (UTC)if it only it were only the whackjobs on Fox
http://www.ctv.ca/CTVNews/TopStories/20090424/mccain_mistake_090424/
(no subject)
Date: 10/3/11 17:20 (UTC)The simple fact is that using a strict definition of the word Socialism it basically does not exist any longer. You have essentially 2 Socialist countries (North Korea and Cuba)in existence and a single country moving in that direction (Venezuela) and there really aren't any politicians of any significance in any major nation proposing instituting Socialism.
(no subject)
Date: 11/3/11 01:40 (UTC)(no subject)
Date: 10/3/11 14:12 (UTC)(no subject)
Date: 10/3/11 14:21 (UTC)Second, wage stagnation can happen for lots of reasons, some the government isn't even involved in at all. Yes, things happen that the government does not cause nor control, woah! :P
This little blurb seems too loaded with fallacies to say too much about.
(no subject)
Date: 10/3/11 14:29 (UTC)Well, the Cowen article claimed that right wing policies weren't too blame because "right wingers" don't run Canada. The main point is that in fact right wing policies were being vigorously enacted throughout that period. Arguably, in fact, policies that were more right wing than the economic policies of GWB I or II's administration.
Note that the observation is that there's a single counterexample to the claim that Canada is left leaning, the point is that the policies throughout those years were solidly conservative. And that secondly, on a large number of key economic measures, Canada just doesn't fit the left wing stereotype.
Of course, the point is that the "class struggle" reason, as Cowen calls it, can't be dismissed with a simplistic observation that Canada wasn't ruled by the "Republican Right", not that there's only one reason for wage stagnation.
I call bullshit, substantiate your claim or retract.
(no subject)
Date: 10/3/11 14:30 (UTC)(no subject)
Date: 10/3/11 14:53 (UTC)Assumption that everything CURRENTLY done in canada then is liberal.
Of course, the point is that the "class struggle" reason, as Cowen calls it, can't be dismissed with a simplistic observation that Canada wasn't ruled by the "Republican Right", not that there's only one reason for wage stagnation.
See, that's still the assumption that because canada is not currently ruled by the "republican right" that conservative policies can't exist.
I call bullshit, substantiate your claim or retract.
That's the rest of the stuff I typed, calm down phideaux, it's not a personal attack. @.@
okay, calmed down now
Date: 10/3/11 14:56 (UTC)Re: okay, calmed down now
Date: 10/3/11 14:59 (UTC)Re: okay, calmed down now
Date: 10/3/11 15:06 (UTC)Re: okay, calmed down now
Date: 10/3/11 21:40 (UTC)Re: okay, calmed down now
Date: 10/3/11 23:10 (UTC)Re: okay, calmed down now
Date: 10/3/11 23:29 (UTC)Re: okay, calmed down now
Date: 11/3/11 00:16 (UTC)Re: okay, calmed down now
Date: 11/3/11 06:51 (UTC)Re: okay, calmed down now
Date: 11/3/11 16:57 (UTC)Re: okay, calmed down now
Date: 11/3/11 18:38 (UTC)Reposted For HTML Fail
Date: 10/3/11 14:27 (UTC)In the meantime, the Pharaohs had arranged the discovery and colonization of the New World, seeing to it that religious misfits, debtors, and desperate adventurers came to populate the northern continent. The Pharaohs arranged the slaughter of the natives so as to have a land without history where they would have maximum power to experiment. (The scheme to mix New and Old World cultures in South America failed miserably.)
The North Americans were divided into two groups, the United States and the Canadians. The US was then subject to intense manipulation in an attempt to advance science and social “progress” as fast as the population could stand it. The Canadians, meanwhile, served as a control group (similar background, culture, and physical environment, without the intense manipulation). If the maniacally advancing technology and upheavals in social traditions in the US brought about its downfall, the Pharaohs would be able to use the Canadians to step in and carry on the experiment.
At present, the US has served its purpose. It has produced technology capable of destroying the world, altering genetic structures, reaching the moon, and more. Just as important, it has failed to develop a social structure capable of handling this power. The Pharaohs can use the technology without any threat from the bewildered and paranoid mutants who dominate the world.
Yeah, I consider Canada to pretty much be the 'control group' for the USA.
Re: Reposted For HTML Fail
Date: 10/3/11 14:53 (UTC)(no subject)
Date: 10/3/11 15:21 (UTC)I mean, does their health care work? Do the trains run on time when it snows?
i imagine that the hospitals are ok and that they trains do run . I also know for sure that despite our best efforts , our system sucks and I wonder what we can learn from these wonderful Canadians.
(no subject)
Date: 10/3/11 15:29 (UTC)(no subject)
Date: 10/3/11 16:06 (UTC)(no subject)
Date: 10/3/11 16:15 (UTC)(no subject)
Date: 10/3/11 17:51 (UTC)(no subject)
Date: 10/3/11 19:27 (UTC)(no subject)
Date: 10/3/11 19:45 (UTC)(no subject)
Date: 11/3/11 02:32 (UTC)(no subject)
Date: 10/3/11 17:13 (UTC)No healthcare system is without faults. There's some very whiney folks complaining about ours. Some are actually more then justified. But most are just shooting from the hip. (http://www.edmontonsun.com/news/edmonton/2011/03/06/17516941.html) I have no complaints about our healthcare.
(no subject)
Date: 10/3/11 17:23 (UTC)(no subject)
Date: 10/3/11 17:56 (UTC)In my case it takes 3 weeks to get a doctors appointment. The usual response from people around me? "You have a doctor? You're lucky!"
A huge percentage of the city of Fredericton has NO family doctor. When the reaction to a wait that long to get the most basic of medical services is that I'm lucky to have access to them at all, something is seriously wrong. There's a disconnect between what Canadians think of health care and what it's really turned into.
(no subject)
Date: 10/3/11 16:27 (UTC)(no subject)
Date: 10/3/11 17:14 (UTC)"Canada is not ruled by the so-called Republican Right.""
Does not in any way shape or form equate to...
"Canada as market hater"
His argument was not that there was no market oriented policy, his argument was that policy in the defined time period was not exclusively market oriented, he then goes on to add additional data points showing how the actual measured data do not support the class struggle explanation except for possibly 3 years during that period.
As far as Canada's more "right wing" government it is mostly an illusion. All of those numbers presented at the Cato article are nice and they do illustrate that Canada has been far more fiscally responsible but they have 2 flaws.
First, when it talks about tax rates it is talking about top and average marginal tax rates. Marginal tax rates are meaningless because I can design 3 different tax systems, one with a 2% marginal rate, one with a 40% marginal rate, and one with a 90% marginal rate and have all 3 collect the exact same number of dollars from a person. You also need to consider deductions, exemptions, accounting rules for what constitutes income vs capital gains and within capital gains a profit vs a loss, how many years one can depreciate capital expenditures over, and how much flexibility one has in determining when to realize a capital gain. The only meaningful comparison of taxes would be to compare the effective tax rate which is the actual taxes paid divided by the income earned regardless of how the tax or income were calculated. Problem is this is a MUCH more difficult number to calculate.
Second, Canada and the US now spend about the same percentage of GDP on Government true. However there is one key difference Canada is not paying to maintain the World Police force. Now of course this is a good thing, the US should not be spending anywhere near as much as it does on it's military but as long as we are doing so there will correspondingly less money available for provision of social services in the US than in Canada, even with the same level of government spending.
(no subject)
Date: 10/3/11 17:58 (UTC)"Canada is not ruled by the so-called Republican Right.""
Does not in any way shape or form equate to...
"Canada as market hater"
No, to be sure, but the point, is that the "class struggle" reason, as Cowen calls it, can't be dismissed with a simplistic observation that Canada wasn't ruled by the "Republican Right". In fact the government during those times were engaged in policies that had a definite "trickle up" effect, e.g., substantially reducing program spending, etc.
"As far as Canada's more "right wing" government it is mostly an illusion. All of those numbers presented at the Cato article are nice and they do illustrate that Canada has been far more fiscally responsible but they have 2 flaws."
Of course, you can quibble with the data, it doesn't follow that the suggestion that Canada's governments have been far more market friendly than they're typically portrayed is "mostly an illusion". You're refining the information in two of the data points, that doesn't equate to a refutation of the substantial point. things like corporate income tax, capital gains, federal spending are all typical metrics of whether or not govts are market-oriented and these point to Canada being more market oriented.