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How different is Canada?

I've been enjoying Globalization and the Meaning of Canadian Life, by William Watson. His main point is that globalization does not prevent countries from increasing the size of their governments, if they choose to.

As late as 1958, the U.S. and Canada had similar percentages for government spending and taxes. Canada then increased its size of government, although the two countries moved economically much closer over the same period of time.

The book is full of interesting facts, although they do not always fit together into the same picture. What are the ten most generous states or provinces in terms of welfare benefits, in the U.S. or Canada (p.146, note that the book is from 1997)? Surprise, all ten are in the U.S. They include New York and California, hardly small parts of the country. If you are curious, Quebec comes in at number 38 on the entire list. The author argues that Canadians are not always as different from Americans as they like to think.

Posted by Tyler Cowen on August 23, 2003 at 06:58 PM in Books, Economics | Permalink

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