As the Atlantic Monthly shows, Canada has the freest economy in North America.
Canada’s economic freedom trails the world average only in government spending. Elaborate social and welfare state programs swell overall government expenditures. Government spending has also increased slightly due to implementation of a significant stimulus package. However, good fiscal management and federal budget surpluses have enabled the economy to undertake stimulus measures without undermining fiscal soundness and long-term economic competitiveness.
Wow, I guess we can break out the “communist American” jokes now. Personally I get a kick out of study that links free economy to low spending and I think it was used more as a partisan attack on President Obama but still I think it makes a point when it is talking about the long term impact of the American budget deficit. Obama and Clinton liked to speak of American spending as a looming national security issue before the election and now they have the stimulus package to pay for. Canada may not be the “land of the free” quite year but wait until interest rates start to climb. Then it will get interesting.
