What Happens When The Government Gets Out Of The Way Of The Economy

Yesterday Investors.com posted an editorial reporting that Canada has surpassed the United States in household wealth.

The article reports:

According to a study by Environics Analytics Wealthscapes published by The Globe & Mail, average Canadian household net worth in 2011 was $363,202, surpassing by $40,000 the $319,970 U.S. average.

What has been going on in Canada lately that has caused this growth in individual wealth? Free enterprise spurred on by lower taxes, less government spending, and less government regulation.

The article reports:

For one thing, Canada has embraced fiscal discipline. Its federal debt is around 35% of GDP compared to the U.S. at 100%. The deficit is 2% of GDP, not 10% as here. At June’s G-20 meeting in Mexico, Prime Minister Stephen Harper told heads of state that economic growth and fiscal discipline “go hand in hand.”

There are lessons here we need to learn:

In January, its slashed its corporate income tax rate to 15%, lowest in the G-7. The U.S. rate is 39.2%, the world’s second-highest. That’s helped Canadian companies create jobs and cut unemployment to 7.2% as the U.S. remains at 8.2%. Foreign direct investment has also surged, hitting a record $26 billion in 2011, fueling even more jobs and wealth.

The article concludes:

The cumulative reality is that these policies translate into wealth for an entire country. Canadians are richer, bolder and face a brighter future because they have quietly abandoned socialism and embraced free markets and free enterprise. We obviously need to relearn the lesson our neighbors are teaching: When free markets are embraced, we all do well.

It matters how you vote in November.