The Canadian Economic System

The Canadian economic system is labeled, mixed economy.  The majority of the means of production in the nation are controlled privately.  Thus, Canada relies heavily on the market, or the free exchange – buying and selling – of goods and services.  Yet Canada’s market economy combines with its socialist economy, given that the government is still in charge of healthcare; parts of infrastructure, that is, the building of most roads; the postal services; and the printing of the Canadian currency.  Many public services in the country are threatened by privatization.  All the same, Canada is not about to do away entirely with its socialist economic structure as part of its mixed economy, seeing as businesses and society as a whole benefit tremendously by many of the services that the government provides freely on the basis of equality.  In fact, socialist economies exist only for the reason of equality or fair distribution of goods and services.  Market economies, on the other hand, are highly competitive, and urge businesses to compete in order to improve the quality of goods and services, and increase their revenues thereby.  The society as a whole in a market economy is encouraged to work hard and raise its standard of living by honest means (“Economic Systems”).

     Canada’s healthcare system is one of the most significant reasons why the country cannot do away with its socialist economic structure that forms an important part of its mixed economy.  Referred to as “Medicare,” the government-supported healthcare system is a significant economic factor.  As a matter of fact, this system is mostly financed from general government revenues.  Medicare thus happens to be a relevant factor in decisions of businesses to base themselves in Canada.  Because the Canadian government pays the majority of the employees’ healthcare costs – as opposed to the United States, where employees have to meet most of these costs on their own – many employers have chosen to locate their businesses in Canada.  The country has, therefore, experienced a surge of migrants from all around the globe (“Economic History of Canada”).  These immigrants have brought their talents along, thereby giving a further boost to Canada’s market economy which is expected to continue thriving with greater skills and competition.  Canada’s society is today a rather diverse one.  In addition, all Canadians – both the natives as well as the immigrants – are known to foster tolerance among themselves, and may easily become a model for the rest of the nations struggling to engender peace.

     Today, Canada is one of the wealthiest nations in the world.  It has a high per capita income and low unemployment rate.  The Canadian economy has been growing rapidly, and the standard of living in the nation is quite high.  The service industry dominates the Canadian economy and employs approximately seventy five percent of Canadians (from all around the world!)  The country is mainly industrial and urban.  The manufacturing and mining sectors have played an essential role in developing it.  Canada is also a net exporter of energy, and one of the world’s most important producers of agricultural goods.  Besides, the nation is heavily dependent on international trade (“Canada”).

     All in all, Canada is open to most kinds of businesses and people who would contribute to its welfare.  Advantageous to businesses, society in general, and the global economy; the Canadian economic system continues to work its wonders and remains as one of the very best in the world.

Works Cited

1. “Canada.” Wikipedia, 2007. Available at http://en.wikipedia.org/wiki/Canada (25 January 2007).

2. “Economic History of Canada.” Wikipedia, 2007. Available at http://en.wikipedia.org/wiki/Economic_history_of_Canada (25 January 2007).

3. “Economic Systems.” Women & The Economy – UN Platform for Action Committee Manitoba (UNPAC), 2006. Available at http://unpac.ca/economy/index2.html (25 January 2007).