A recent Canadian study examining average household wealth in Canada and the U.S. reported something quite shocking. According to the study, the average Canadian has a net worth of $363,202, compared to $319,970 for the average American.
While headline writers have touted this as a vindication of socialism, the reality is quite different. Canada deserves plenty of kudos, but its recent economic success owes to moves away from socialism, not toward it.
According to the Index of Economic Freedom, Canada has, in the last two years, surpassed the United States to become the freest country in North America. Through moves such as downsizing government and cutting its corporate tax rate, Canada has restored economic dynamism and reduced unemployment. In June, for the fourth straight month this year, the Canadian economy created more net new jobs than expected.
By contrast, the U.S. economy has suffered from four consecutive years of over $1 trillion budget deficits, an exploding regulatory burden, and ever-growing government intrusion. It’s no wonder we have fallen behind.
So give a shout out to our Canadian neighbors, but applaud them for what they have actually done. It’s economic freedom, not socialism, that’s driving Canadian success.