A recent report from Bloomberg ranks Canada as the second-best country in which to do business, behind Hong Kong and ahead of the United States. This comes on the heels of a survey by the Wall Street Journal and the Heritage Foundation, in which Canada was rated sixth in economic freedom, while the United States came in twelfth.
To anyone who has done business in both countries, this comes as no shock.
Indeed, the only surprising thing about these reports and the surrounding analysis is that Americans continue to be flabbergasted each time their system of high taxes and crippling regulation, backed up by a draconian prosecution regime, is revealed not to be working.
As I explained to the Daily Caller’s Tucker Carlson on the Fox News Channel last year, not only are Canada’s personal and corporate tax rates lower than those of the United States, the compliance burden of the American system – including the international theft perpetrated by the Internal Revenue Service in the form of its worldwide reporting requirements – makes serfs of its citizens and renders the country inhospitable to business.
Reports of Canada’s economic success usually give credit to Prime Minister Stephen Harper, and that’s fair enough. But there is nothing novel to Harper’s approach. Politicians of many parties in numerous countries have opted to reduce tax rates as a means to increase revenue and entice capital. It is only relative to other modern Western leaders, to whom the concept of growing an economy by shrinking the government has seemingly never occurred, that Harper’s approach seems revolutionary.
From a policy perspective, Harper bears little resemblance to the hard-right, puppy-eating Sith Lord his liberal detractors imagine. As just one example, despite enjoying a Parliamentary majority – which amounts to near-dictatorial powers until the next election – Harper’s Conservatives have just enacted one of the environmental movement’s most absurd agenda items (and this is some distinction) in the form of a ban on incandescent light bulbs.
Fair or not, Harper’s image is bloodless and cold. He is not a smiley sort, and this is perhaps a good thing as his attempts to seem cheerful result in a Bond-villain rictus that puts no one at ease. While this may satisfy some people’s notion of a heartless conservative, the test of a political leader is the effectiveness of his policies, not how chummy he comes off while spending other people’s money.
For the United States, this demonstrates that electing leaders on the basis of demographic superficialities and big government populism, even as their policies harm the same middle class they purport to help, is a path to economic mediocrity and worse.