---- —
Suppose the U.S. government had posted a budget surplus in 12 of the past 13 years. Suppose not a single major American financial institution had failed or needed a government bailout. Suppose the U.S. economy grew at an annual rate of 6.1 percent in the first quarter of this year, rather than at 2.7 percent.
Wouldn’t that make you happy?
These cheering economic indicators happen to be reality in Canada. They did not come about because Canadians are more virtuous or they don’t have subprime mortgages (they do) or they didn’t keep interest rates very low (their rates were much like ours). What Canada had was a civic culture that wanted government to regulate financial activity.
What we have is an elite willing to risk everyone else’s economic security to enable a few hotshots to win big at the casino of recklessness and fraud — while maintaining a variety of taxpayer backstops to reduce their risks. The joint never gets closed, also thanks to the large numbers of ordinary citizens trained to holler “socialism” every time the government tries to set a ground rule. A satanic belief in the rightness of free markets to punish the unsophisticated almost halted the creation of a Consumer Financial Protection Bureau.
Canada has long had its Financial Consumer Agency, which stops the craziest of lending practices. Canada regulates mortgage terms so that borrowers — be they greedy, reckless or plain suckers — are less likely to crumple when, sometime down the road, an interest rate jumps.
Yell all you want about Americans who borrowed beyond their means. Canada had rules that stopped people from borrowing beyond their means. As a result, Canada was spared a U.S.-style housing bubble, which was fed in part by the ability of little people to borrow big and use the money to bid up home prices.
By the way, Canadian home prices rose almost 14 percent in May from a year earlier. And the World Economic Forum now ranks Canada’s banking system the safest on earth.
There are differences in the two countries’ situations that do give Canada an advantage. One is Canada’s enormous wealth of natural resources, especially oil. Another is the United States’ role as keeper of global security — a job that other countries are all-too-pleased to give us. This greatly cuts the amount Canada must spend on its defense.
But Canada’s smart government regulation is its own creation. That may make it harder for a few financial wizards to score a quick fortune, but it keeps the economy on an even keel. Merchants, manufacturers and other economic players don’t have their customers hauling off huge cartloads of stuff one year and then filing for bankruptcy the next. They can plan for the future.
Canada’s health-care system likewise makes budgeting for operating expenses far more predictable for employers. The Canadian single-payer system is not my health-care ideal. I prefer the multi-payer setup in France — or the emerging American health-care system, if the reforms can control costs. But the vast majority of Canadians are content with their medical care.
So how are Canadian businesses doing these days relative to ours? It’s true that the Standard & Poor’s index of 500 large U.S. companies has done pretty well this year. But the Toronto exchange’s index of large-cap Canadian stocks did 27 percent better.
Periodic booms and busts don’t have to be Americans’ fate. Some people get very rich off them. But for ordinary folk, slow and steady wins the race. Support for letting government install some speed bumps to enhance their financial stability has left Canadians fat and happy. We could live the same way.
Creators Syndicate
Opinion
Regulation helped to make Canada fat and happy
- Opinion
-
-
Who’s responsible for uptick in economy? It’s hard to figure
There was one thing I was taught years ago when I was a young reporter: Every politician lies, but the real story is the reason behind the lies.
-
Juicy tips will be far fewer without ‘Scoop’ on the phone
I enjoyed calling him Scoop. I was the newspaper guy, but for more years than I can remember, Gary Douglas was at the other end of phone calls on a regular basis.
“Did you hear about this? Did you hear about that? Did you hear about so-and-so? Better check this out. I’ll bet you haven’t heard about this.”
That usually was the flow of the conversation. Most of the time he was right. Some of the tips turned into stories that were fit to print, and others not so much.
-
The only thing we have to fear is fear-mongering
To hear some folks tell it, it’s no longer morning in America, it’s five minutes to midnight. They say the United States, once the greatest nation on Earth, is today on a glide path to the ash heap of history.
-
Super Bowl Sunday brings a super boost for the local economy
The game is more than a glitzy international event. It serves as a one-day boon to local economies like ours here at home.
-
Punxsutawney Phil, Mitt and a litany of bad GOP hopefuls
Here are some thoughts from a guy who doesn’t put a whole lot of stock in rascally rodents that make weather forecasts.
-
In Ed Likovich’s yard, apples don’t fall very far from the tree
Adage tells us that the apple doesn’t fall far from the tree. It really applies to the Likovich family of Hermitage, specifically Ed the father and teacher and Ed the son and student.
-
A smaller state legislature? Don’t hold your breath
Don't tell me that our state General Assembly is finally going to do what should have been done many years ago – cut the size of the Legislature.
-
A sad end to life: History will determine JoePa’s legacy
I had the privilege, yes privilege and honor, of meeting Joe Paterno several times in my life, both as a student at Penn State and in my role as editor of The Herald. It was with a heavy heart when I learned that he was near death during the Mercer County Hall of Fame’s annual dinner at the Park Inn by Radisson Saturday, and that he had died Sunday.
-
OUR VIEW: Dearth of candidate interest defies worth of legislative races
In case you hadn’t noticed, this is an election year. Actually every year is, but this is one of the big ones. Sure, there’s some sort of presidential race going on, but that’s just a sideshow to where the real action in this year’s election is – or at least should be.
Voters across the country will be electing every member of the U.S. House of Representatives, and here in Mercer County voters will help decide who represents three state House districts. -
Hall of Fame weekend stirs memories of ‘good old days’
Is there anything better than reminiscing about the “good old days”? That’s why I love the Mercer County Hall of Fame’s annual induction weekend.
- More Opinion Headlines
-
