Our Great Neighbors to the North!


By Leslie James
January 6, 2012

Published in the Jan-Feb 2012 issue of MyLIFE magazine


The city of Vancouever has been ranked as “the most livable city in the world” by the Economist several times.

Last summer, I visited Victoria in British Columbia, Canada, for a family event. While I was there I was inundated with questions about what was going on in the United States with regard to politics, the upcoming election and the economic meltdown. On my return to the States, I thought it might be interesting to introduce you to our great neighbors to the north—you know those happy-go-lucky, friendly, fun-loving, hockey-crazed and very compassionate Canucks.

Canada is America’s greatest neighbor, ally and trading partner—we are two sovereign nations who have the world’s largest unmanned, open borders anywhere in the world (5,000 miles of no dang fences).

Canada should be known for more than ice hockey (and the sport’s coveted Stanley Cup trophy—the envy of most professional sports teams), maple syrup, french fries and gravy, and the Canadian Beaver. But when one considers the bigger picture, Canada has long been somewhat misunderstood by many Americans, especially those living in states that do not border Canada.

I can remember growing up in Montreal during the ’50s. Americans would visit in midsummer, when it was 90 degrees, arriving with skis strapped to the roof of their car. Fifty years later, friends tell me that Americans still do the same thing, thinking that Canada is the “frozen north,” where inhabitants live in igloos or ice castles and it’s dark six months of the year.

I remain convinced that many Americans know little about their Canadian neighbors, but the same cannot be said for Canadians, who seem to know more about America. For example, how many know that during the War of 1812, the United States attempted to invade and take over Canada (which was still under British rule at the time) with sizeable military forces? Under President James Madison, American leaders were confident they could easily take over Canada. In fact, Madison proclaimed that the acquisition of Canada would be “a mere matter of marching.” William Eustis, the U.S. Secretary of War at the time, declared, “We can take the Canadas without soldiers, we have only to send officers into the province and the people … will rally round our standard.” In the two years that followed, despite sending American armies onto Canadian soil in three different military engagements, in each case, British forces made up of Canadian militia, Native Americans and French Canadians prevailed. These were decisive defeats for the Americans.

First, allow me to say that both countries have very proud patriots who feel strongly about their respective nations. Canadians, though, tend to be closet patriots (except when their team is playing hockey in the Olympics or in situations involving the Stanley Cup), while Americans wave the flag a little more readily. However, this is changing, and more and more Canadians now wave the red maple leaf.

Another salient fact is that Canada is experiencing a far more prosperous economy than we are and currently has as one of the most stable economies in the free world. How can this be true, mon ami, when Canada’s government offers so many socialist programs to the country’s citizens—programs that many U.S. politicians discredit on a frequent basis? This editorial might surprise you and offer some insight into how Canadians live, act and prosper, with ideas not typically part of today’s American fabric, but which also work well in many other countries around the world.

Canada’s confederation took place on July 1, 1867. The country remained part of the British Empire and flew the Union Jack, the flag of England, until 1965, when Canada replaced that flag with its colorful red maple leaf. Canada remained a member of the British Empire until 1982, when under Prime Minister Pierre Trudeau Canada patriated the Canadian Constitution from England. This event was called the Canada Act of 1982, which was signed into law by Queen Elizabeth II. Canada then became a sovereign nation.

From coast to coast, Canada is the second largest country in the world, behind Russia and ahead of the United States. Canada and the United States are the largest global trading partners, and yet Canada has a population of just 34.6 million, which is about the same population as in the state of California, while the United States has a population of 312.6 million.

Canada also lays claim to having North America’s oldest commercial corporation, known as the Hudson’s Bay Company, which received its charter in 1670, 106 years before America attained confederation. The company, headquartered in Toronto, is still in business.

America imports more crude oil from Canada than any other nation in the world—roughly 25 percent of its total annual consumption. Canada is self-sufficient in most every natural resource and has the world’s third largest crude oil reserve, the Alberta Tar Sands. Only Saudi Arabia and Venezuela have larger reserves of crude oil. And, Canada is not a member of OPEC. In addition, the province of Quebec, located in eastern Canada, provides America’s eastern seaboard, from New Hampshire to Florida, with almost 40 percent of its annual electrical power.

The Canadian armed forces have a long and distinguished history, although they remain much smaller than their American counterparts. Canada’s full-time forces total roughly 65,000, with 45,000 in reserve. The United States has roughly 1.5 million full-time forces and nearly 825,000 in reserve, with an annual defense budget that surpasses $600 billion. Canada’s army, navy and air force are held in high esteem by all NATO nations, who view them as sophisticated and highly trained. Canada’s armed forces continue to support American efforts in the war in Afghanistan. Thus far, Canadian troop deployments have totaled roughly 5,000, and by any standard, as with American casualties, Canadian combat losses have been far too high.

I served a stint in the Canadian navy during the ’60s. Recently, I wore with great pride my Canadian navy T-shirt into a local gym. The shirt is dark blue, with Canadian Navy in bold gold print across the front and a red maple leaf smack in the middle—it looks awesome. As I was leaving the facility, a middle-aged gentleman approached me and asked, “Canada has a navy?” Half-jokingly, I responded by saying, “They certainly do!” His reply was, “What do they do, patrol the Great Lakes?”

The Canadian government continues to mandate stronger regulations and stiffer guidelines and financial controls for doing business in Canada, all of which are all intended to protect Canada’s population from scams and unscrupulous programs that can hurt the country’s citizens. Canada has only six chartered banks (none of which ceased operations during the recent financial meltdown), whereas the United States has 6,453. The total pre-meltdown figure was closer to 16,000. I recently mentioned this fact to a business associate, who replied by stating that America is 100 times bigger than Canada so it should have 100 times the banks. I explained to my associate that the United States is about nine times larger than Canada in terms of population, but even so, six banks multiplied by 100 would total only 600 banks, not 6,000 and then some.


Canada’s capital in Ottawa, Ontario (Parliament building with its new Mosaika sound and light show).

Canadians don’t have the luxury of a mortgage interest tax deduction. They have to save more to own a house because they pay for their home mortgages with after-tax earnings. Despite this additional financial burden, Canada has a bustling economy. Canadian banks can’t sell the home mortgages they write, which is a common practice in America. They have to hold them for the full term of the note, 15 to 30 years, because the Canadian government believes the whole concept of selling mortgages can lead to unscrupulous business practices, which ultimately could hurt the country’s citizens in the pocketbook—and that is exactly what caused the home mortgage collapse in America.

Maybe America could benefit by adopting the fiscal responsibility and government controls Canada mandates? Recently, Canada’s total government debt burden was ranked the lowest at the G8 summit meeting, which was attended by representatives from countries with the eight largest economies in the world: Canada, France, Germany, Italy, Japan, Russia, the United Kingdom and the United States.

As America focuses on the 2012 national elections, I thought you might find Canada’s election process and the associated campaign costs of significant interest. How do Canadians hold national elections, and how much is spent on their elections? Canadians go to the polls just as Americans do. The process starts when the prime minister of Canada elects to dissolve the country’s parliament and asks the governor general to call a federal election. Canada must hold an election every four years, unless the prime minister wishes to call one earlier. The entire election process (from the dissolution of parliament and national campaigning for re-election to the actual voting, counting of votes and declaration of a winner) typically takes place in less than six weeks. You heard me right. Six weeks, not two years. Most candidates running for office spend less than $150,000, and those seeking the office of prime minister spend less than $30 million in total campaign expenditures—equal to what some U.S. candidates spend just to run for a seat in Congress. Early reports estimate that for the 2012 U.S. presidential election, each candidate could spend close to $1 billion, with a total of $5 to 6 billion for all candidates combined. And this during at a time when America is in the worst financial mess in decades; home foreclosures are in the millions, unemployment remains at its highest level since the Great Depression and 50 percent of Americans are earning less than $27,500 per year.

Most Canadians pay personal income tax rates between 34 percent and 40 percent, despite what many U.S. politicians propagate. The claims are that Canadians pay so much more than Americans because they have to pay for all of the social programs they receive from their government. Even though that’s not true, one could argue that at least Canadians get something for the taxes they pay, while Americans get what? What is fundamentally true is that most every Canadian does pay taxes, while in the United States, it’s reported that less than 45 percent of the population pays taxes. And those who do—everyday working stiffs—pay the same as most Canadians (approximately 35 percent). And then you have America’s wealthiest 1 percent, many of whom make millions or even billons and pay far less than those Americans who make pennies in comparison.

It doesn’t matter how you cut the cake, what Canadians get in return for their taxes is substantial. Canada’s government provides a larger system of social programs, most all of which are not afforded by its U.S. counterpart. One such program is the Canadian Broadcasting Corporation, a national broadcast system that openly reports on world events. Other programs provide significant government funding for universities and colleges nationwide, making a college education affordable for all Canadians; it can cost as little as $5,500 per year to attend a top-ranked university. Canada also has a largely government-funded universal health care system. Contrary to popular belief here in the United States, the U.S. government spends more on health care than the Canadian government does (14.6 percent of total gross domestic product vs. 10 percent, respectively). Moreover, life expectancy and infant mortality rates are better in Canada. It should also be noted that Canadians receive two forms of monthly pension payments. Canada Pension (the equivalent of Social Security) payments are based on what an individual has paid in, and it remains a solid investment for all Canadians (there are no IOUs against this fund). In addition, every Canadian, upon reaching the age of 65, receives a monthly payment of $500 from Canada’s Old Age Pension.

No country is perfect, no government does everything right and not every program is the best, even though something is nearly always better than nothing. Of greater importance is for citizens of both countries to know that every elected official who seeks a higher office should do so with the desire to make the lives of their constituents better. Every day as these elected officials go to work, their only job should be to provide a better future and a higher quality of life for the entire population.

Jack Layton, 1950-2011.

Recently one of Canada’s most beloved statesmen passed away. John Gilbert “Jack” Layton was the leader of Canada’s New Democratic Party, the official opposition party in Canada. Layton joined politics to make a difference. He was a staunch advocate for taxpayers’ rights. He believed that what’s good for every Canadian is also what’s best for the country and would make Canada a better place. His “never say die” attitude propelled his political party to almost win last year’s national election. Prior to his death, Layton penned a letter to his party and his fellow Canadians. In the letter, he wished his party to be principled and unfailing in character, and to allow honesty and integrity to set the benchmark. And he reminded all Canadians that a bright future for the country was in their hands. “Canada,” he wrote, “is a great country, one of the hopes of the world. We can be a better one—a country of greater equality, justice and opportunity. Don’t let them tell you it can’t be done.”

After thanking and encouraging his party members, “fellow Quebeckers” and Canada’s youth, he concluded by saying: “My friends … love is better than anger. Hope is better than fear. Optimism is better than despair. So let us be loving, hopeful and optimistic, and we’ll change the world.” Forty-eight hours later, Jack Layton died … and the country lost a truly great Canadian. The Honorable Stephen Harper, Canada’s prime minister, called for a state funeral, a rite normally reserved for heads of state.

What country, what government, what political system would not want the “never say die” attitude and strong character of a Jack Layton in their corner? America, Canada is at your doorstep. Embrace it. Canada is a land of sheer beauty, and that beauty starts with Canada’s people. Some might be greater than others, but all Canadians have heart. Canada is a world-class country. I invite all of you to take the time to learn more about your great neighbors to the north. They are worth getting to know better.

CANADA

Founded – July 1, 1867
Capital – Ottawa, Ontario
Population – 34.6 million
Motto – From Sea to Sea
Official languages – English and French
Official flag – Until 1965, the Union Jack; after 1965, the Maple Leaf
Anthem – O Canada
Royal anthem – God Save the Queen
Monarch – The queen
Government – Parliamentary democratic system
Governor General – Queen’s representative
Prime Minister – Elected by the people
Legislature:
Upper House – Senate – 105 members, appointed and serve to age 75
Lower House – House of Commons – 308 members, elected
Political parties – Liberal, Conservative, New Democratic Party, Bloc Quebecois, Green
Provinces – 10
Territories – 3
Military – Voluntary force (regular and reserve); 110,000
Capital punishment – No
Currency – Canadian dollar
Canadian banks – 6
5 largest cities (in population) – Toronto, Montreal, Calgary, Ottawa, Edmonton

UNITED STATES

Founded – July 4, 1776
Capital – Washington, D.C.
Population – Approx. 312 million
Motto – In God We Trust
Official languages – None at the federal level; however, English is the national language
Official flag – The Stars and Stripes
Anthem – The Star-Spangled Banner
Government – Federal constitutional republic
President, Vice President – Elected by the people (both run on one ticket for the party)
Speaker of the House – Elected by the people; appointed by the party
Chief Justice – Appointed by the president
Legislature:
Upper House – Senate – 100 members, elected by the people
Lower House – House of Representatives – 435 members, elected by the people
Political parties – Republicans, Democrats, Independent
States – 50
Military – Voluntary force (regular, reserve and National Guard); approx. 2.4 million; the president serves as commander-in-chief
Capital punishment – Yes
Currency – U.S. dollar
U.S. banks – Approx. 10,000
5 largest cities (in population) – New York, Los Angeles, Chicago, Houston, Philadelphia

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