The United States has a problem. In more ways than one the country just isn't working. The U.S. is becoming increasingly ungovernable and all attempts by the current administration to correct the country's declining course are being met with political and structural obstacles.
This is not good news for Canada. The U.S. is our largest trading partner. It's often said when the U.S. sneezes, Canada comes down with pneumonia.
Is there a way to distance our reasonably healthy Canadian economy from our neighbour's deteriorating condition? It's a given we can't do anything about our geography, but can we take steps to avoid being caught up in the slippery-slope economic slide of the U.S.?
Sure we can and in many ways we already are. We do have a few advantages, some natural, some organizational. Canada is a commodity-exporting nation. We export agricultural products, energy, forest products and minerals. The down side is a lot of those exports have traditionally gone to the U.S. The upside is more and more of our exports are finding non-U.S. markets. We know of our British Columbia success in increasing lumber shipments to China with increasing sales emphasis on sales to India. And in a recent coup, Canada enacted a free trade agreement with Columbia and scooped an $8 million wheat sales contract from the U.S.
On the political side, a lot has to be said for a parliamentary government. A huge problem facing the U.S. is its dysfunctional and antagonistic Congress and there's a reason for the congressional intransigence. U.S. politicians are unduly dependent on the deep pockets of lobbyists. Money talks in Washington and U.S. lawmakers walk the talk.
The anti-Canadian U.S. Softwood Lumber Coalition is a good example of large political contributions trumping sound economic policy. A free market for Canadian finished lumber products would lower the cost of housing in the U.S. and provide increased employment throughout the country. Yet one well-financed lobby group from the U.S. South East has successfully lobbied to keep the price of Canadian softwood artificially high.
The result of this and other poor government practises in the U.S. - such as the 2008 mortgage crises - is a national unemployment rate of 9.1 per cent. It's 7.2 per cent in Canada. Both figures are from August, 2011. California - which has a larger population than Canada - has an unemployment rate of 12 per cent.
More and more those numbers are pointing to our most significant advantage; which is our human resource. Forget oil, coal, wood or copper, the only real resource a country has is its people and it is in this category where Canada shines and must continue to lead.
As an example, the Organization for Economic Co-operation and Development (OECD) publishes an international educational assessment of 15 year-olds. Three fields are studied; maths, sciences and reading. In all categories, Canada consistently ranks in the top 10 of the OECD countries. With the exception of Finland, the top students are from Asian countries. The U.S. ranks 30th in maths, 23rd in sciences and 17th in reading skills.
Currently, U.S. President Obama is seeking passage of a jobs bill in Washington. I wish him luck, but what can the U.S. do to get itself back to work. It's outsourced its manufacturing capacity. Its education system is lagging badly and any attempts to revive the U.S. economy will depend on breathing life into a poorly educated labour pool 20 years behind the times.
Looking at the upcoming 2012 U.S. presidential election shows little sigh of improvement. President Obama is trailing in the polls. Hard-care Republicans are promising to lower taxes and cut spending, yet are saying little about making the U.S. a competitive player in the international market place.
Canada has always been a bit different from the U.S. While both countries have enjoyed the benefits of a market economy, Canadians have consistently sought to develop a collective identity and prosperity as opposed to the individualism so admired in the U.S.
Two separate paths to nation building and two different results.
As we wing our way into the 21st century it's becoming increasing clear, Canada is not at all like the U.S.
We have a future.
A retrospective beautiful mind.
Last week, former Liberal leader Michael Ignatieff wrote a superb piece for the Globe and Mail about the course of world events following 9/11. It was analytical, professorial and profoundly reflective. It was Michael Ignatieff at his academic best. No doubt Liberals right across Canada read the column and thought about Ignatieff's unceremonious exit from politics and what a loss it was to the Canadian political scene.
Although Ignatieff's observations were well thought out and clearly stated, they were more reflective than visionary. Perhaps that explains his lack of connectivity to the Canadian voter. Leaders have to present clear, understandable ideas. When you're driving quickly into the unknown, the best rear view mirror is not nearly as important as a good set of political high beams, 20-20 forward vision and fast reflexes.
