Canada Shows the GOP How It's Done

Lately, Republicans clamoring for smaller government have been increasingly looking to Canada for examples of successful conservative policies.

Charles Koch, the billionaire businessman currently under fire from the left over his contributions to conservative causes, wrote a widely circulated opinion article in the Wall Street Journal Tuesday explaining why he's advocating for free-market reforms and reducing the deficit.

A mention of Canada caught my eye: Koch uses the northern neighbor as a testament of the success that comes from reducing the size of government. "When Canada recently reduced its federal spending to 11.3% of GDP from 17.5% eight years earlier, the economy rebounded and unemployment dropped. By comparison, our federal spending is 25% of GDP," writes Koch.

Ironically, one of the reasons that Canada is able to lead in this category is that government control of its healthcare system has led to lower per capita expenditures. In 2008, total healthcare spending accounted for 10.4% of GDP in Canada, as compared to 16% in the United States. Until the US can apply some cost discipline of its own to its healthcare accounts, the US will have difficulty equaling Canada's debt performance - and is headed for a future in which American taxes will likely exceed Canadian.

It is possible that what seemed impossible mere years ago - Canada more successfully effecting conservative change than the United States - is now becoming a theme amongst Republicans and conservatives clamoring for smaller government.

During the Conservative Political Action Conference (CPAC) last month, presumed Republican presidential candidate Mitt Romney again pointed to Canada as both a model and a source of American shame.

"Today there are more men and women out of work in America than there are people working in Canada. And in the month of January, Canada created more new jobs than we did," Romney said in a speech to CPAC attendees. The unsaid implication? Canada -- the country that many in the audience might refer to as America's top hat -- is creating more jobs than the United States! How can this possibly be?

Is Canada becoming the go-to model for the successful implementation of conservative policies?

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