The average American knows little about our Canadian neighbors. Little is known about Canada being an economic powerhouse or as a member of the G7 countries; Canada holds its own weight economically.
Canada's economy resembles the US in its market-oriented economic system, as well as its patterns of industry, and high living standards. The Canadian economy has grown3.0% annually since 1993 despite an economic downturn. Unfortunately unemployment in Canada has risen dramatically, and the government's financial problems have led to enormous debt. Despite all these factors the Canadian economy has still seen growth. Canada has sense become heavily dependent on U.S. trade, since the US-Canada Free trade Agreement (FTA) 1989, and the North America Free Trade Agreement (NAFTA) the intertwining of the two economies have led to cooperative economic benefits. Canada enjoys the benefits of having an enormous amount of natural resources ranging from iron, steel and lumber. Canada has become the leading exporter of lumber in the 20th century which, in large part led to Canada being given its G7 title.
The per capita income of Canadians ranks with the highest members of the G7 countries, which allows for an enormous amount of consumer purchasing power. Consumer spending in Canada has reached levels of 500 billion dollars last year alone. Consumer spending has also risen rapidly on items related to information technology. Average family income continues to increase as Canada's economy strengthens, labor market conditions continue to improve, and governments move to trim tax rates.
The level of imports versus exports is much less, allowing Canada to retain its industrial powerhouse status. In contrast the level of exports and imports in the United States, imports are much higher then exports. As a result the US economy has largely become service based leaving production of its consumer goods up to...