Featuring fresh takes and real-time analysis from HuffPost's signature lineup of contributors
David Gratzer

GET UPDATES FROM David Gratzer
 

Why Forbes Thinks Canada's Economy Is Number One

Posted: 10/07/11 12:17 PM ET

In 2007, the line ran down the street, as people queued to get in on the action. Some apparently waited for days hoping to purchase a condo in a building to be built. With such demand, the developers kept upping the unit prices -- literally posting the ever-rising prices on a billboard. The penthouse, for the record, was sold to a Hong Kong man who had agreed to drop $25 million.

One Bloor condo building was a project that died with Lehman Brothers. It has not stayed dead for long.

Originally meant to stretch 80 stories over Toronto's luxury shops of the Yonge and Bloor area, the condo building that would host a hotel and swath of stores (supported by the American financial powerhouse that had survived the Depression but not subprime mortgages) was not built in 2008. The next year, the developers mulled a scaled-back version. And then, nothing. For months, the lot stood empty, symbolic of a world that collapsed into recession.

And in 2011? The building is going up and the condos are being sold. Welcome to Canada.

It's no longer 2008 and while the rest of the world stews in malaise and economic crisis, Canada is doing just fine. One Bloor has new owners and the plans are ambitious. Rumours circulate that Apple is eyeing some retail space. (For the record, Toronto now rivals New York City in the number of Apple stores.) The building will soon stretch tall over a prosperous Toronto, in a prosperous Canada.

The world may be in recession, but Canada isn't. The economy expands, posting a robust 3.1 per cent last year.

Are Greek banks safe? What's going on in Spain? Is Italy next? Canadians worry only about the impact of other countries on a prosperous land.

Others have noticed. When the G20 gathered in Toronto, the Washington Post ran a fawning article on the stability of our housing market and the Huffington Post provided America's jobless with clever if unusual advice: move to Canada.

Forbes joins a growing list of fans, putting Canada at the top of its list of places to do business. The ranking considered 11 factors for 134 countries, including property rights, red tape, corruption, freedom, and stock market performance.

Writes Forbes' Kurt Badenhausen:

"During the run-up to every U.S. presidential election, countless Americans threaten to move to Canada if their preferred candidate does not emerge victorious. Of course, few follow through with a move north. Maybe it is time to reconsider."

Canada gets special mention for avoiding the banking meltdown and good economic performance.

Such rankings are easy to criticize. For instance, Canada gets top marks for freedom -- odd in a country where you can easily get a marijuana joint in most big cities, but not a private MRI scan; the health care sector remains hopelessly overregulated.

Still Canada does well. It's a marked contrast from just a few years ago, when the country seemed on the cusp of falling apart, literally in the wake of Quebec's separatist ambitions (falling just 10,000 votes shy of secession in a 1995 referendum).

Some of Canada's success can be tied to good fortune. Commodities are booming, and Canada is rich in many natural resources (within 10 years, it could be the second largest oil producing nation in the world). And in this recession, as in the early 1980s, and unlike the 1930s, a barrel of oil continues to fetch a good price.

But not all of this is luck. At a time of bad public policy, Canadians remain calm and reasonable. Taxes are coming down and public spending has been relatively restrained. After all, Canada isn't the United States.

Will it continue? Canada's manufacturing is hot because of exports to the United States -- how long will Americans buy Canadian made cars if their economic woes continue? Commodities trade high -- how much longer before Asia catches the American flu? On the day that Forbes chose to highlight Canada, its dollar fell to the lowest level in a year, rocked by international economic instability. But compared to many other countries, these are (relatively) good worries to have.

After all, it's Canada's One Bloor moment - a time of wealth and exuberance.

This article was originally posted on FrumForum.com.

 
In 2007, the line ran down the street, as people queued to get in on the action. Some apparently waited for days hoping to purchase a condo in a building to be built. With such demand, the developers ...
In 2007, the line ran down the street, as people queued to get in on the action. Some apparently waited for days hoping to purchase a condo in a building to be built. With such demand, the developers ...
 
 
  • Comments
  • 27
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Favorites
Recency  | 
Popularity
11:19 PM on 10/09/2011
Declining TAXES & producing OIL & Canada is doing good.
Obama held a drilling moratorium & is too raise TAXES & America's economy? Not good. Thanks dems for your attack on the oil industry, now we import more from Canada & they have what could be US jobs & wealth.
04:31 PM on 10/08/2011
To be honest I only read this article because I didn't realize that it was the same article that was posted yesterday. But then how could I when someone, not pointing fingers here, changed the headline from a medical article extolling the virtues of two-tiered health care to Canadians.

Gratzner, if the comments are anything to go by, continues to understand the simple rules that Canadian healthcare follows. You get in based upon availability, immediate need, and ability to travel just like you do in an ER. ER's work, so does our healthcare system.

To continue even further you actually can get a private MRI in Canada and when you go get one you likely are getting one that's from a private organization. The difference between the US and Canada? The US restricts access by charged price and Canada restricts access by actual need and availability. Why can we afford to do it in this more humane and free way? Because Health Canada pays for all MRI's.

If Gratzner really wants to make Canadian healthcare better than maybe instead of trying to sell a product that doesn't work for the majority of Americans he should lobby the government to spend more on healthcare. Otherwise he just comes across as another ambulance chaser trying to make an extra buck off of human misery.
11:04 AM on 10/08/2011
Thank the Conservatives for quietly simplifying doing business for business owners. One of my firends who just won HSBC award for doing business in Asia said with the corporate tax rate dropping, it is becoming time to do work in Canada again instead of outsourcing to China and India.
photo
HUFFPOST SUPER USER
Thomas Green
02:07 AM on 10/08/2011
I'll take a hopelessly over-regulated that comes in cheaper as a percentage of GDP and offers a longer life expectancy.

Steve Jobs is the most recent example. Sure he should have the freedom to spend all the money he wants on his own health, but it offered little and does nothing but drive up the cost for everyone else.
01:06 AM on 10/08/2011
Dr Gratzer continues to push his biased private health care agenda. Canadians have completed national surveys which indicate Canadians would PAY MORE in taxes than introduce more private health care.

Gratzer of course does not share that the public/private model in the United States has more medical error, higher administration costs and their healthcare system costs 16% of GDP compared to Canadas 12%.

Dont be scared that because a doctor says we need private care that we do. He is self interested to make more money. YOUR MONEY.
11:41 PM on 10/07/2011
..."the health care sector remains hopelessly overregulated." - Hardly, "Canadian universal health care is available to everyone, rich, tired, poor and huddled masses. If only the welcoming beacon of the US Statue of Liberty could promise that basic human compassion. Not likely.

Kill, boil, package and sell the poor for a tidy profit is what a poor sick person can look forward to under US health care. When the US values a human life more than a human dollar, the dream of liberty might be restored.

Until then, don't have a heart attack or a liver transplant - if you do, sell your house and go beg under the bridge. That's US health care. Canada got it right.
06:28 PM on 10/07/2011
"For instance, Canada gets top marks for freedom -- odd in a country where you can easily get a marijuana joint in most big cities, but not a private MRI scan; the health care sector remains hopelessly overregulated."

What? Are you a shill for America's health insurance industry? Privatized heath-care is for the wealthy who can afford to pay for specialized treatments without having to get in line with everyone else. The expansion of private clinics will just slowly eat away at the universal healthcare system, sapping it of professionals when it already has a difficult time filling its requirements.

For those of you who have the financial ability to pay to jump ahead in the line... you already have this ability,when the wealthy don't want to wait they hop a plane to the US. Keep your greedy hands OFF public health care richers
04:06 PM on 10/07/2011
The fact that the dollar fell to a recent low is not a bad thing for a resource based economy selling to such a large neighbour. IT makes Canadian products even more attractive.. In bad times willl people be willing to pay a premium for made in USA or look for a discount from Canada... a telling sign will be the influx of cross boarder shoppers
This user has chosen to opt out of the Badges program
chuck nathaniel
Your micro-bio is pending approval
03:34 PM on 10/07/2011
"Canada's manufacturing is hot because of exports to the United States"

Canada's entire economy is inextricably linked to the State's. IF the US tumbles, so will Canada.

Now, the nay-sayers will say "asia". But asia consumes a fraction of what America does, and their economy is also being propped-up by a housing bubble.
06:29 PM on 10/07/2011
"IF the US tumbles, so will Canada."

So how do you explain Canada not tumbling while the US economy is in freefall?
This user has chosen to opt out of the Badges program
chuck nathaniel
Your micro-bio is pending approval
07:21 PM on 10/07/2011
By understanding the complexity of the markets with far more nuance than you, apparently.

You see, Canada's economy is inextricably linked to the well-being of the US. As the US falls, so do Canadian exports to the US, which Canada is absolutely dependent upon.

Yes, Canada's banking system is in much better shape that the State's. But that is just one tiny piece of the picture. As long as Canada's most significant trading partner is faltering, so will their exports. Asia is a teeny, tiny fraction of Canadian exports. They will never replace the States. Read what any Canadian economist has to say about the matter.

As for Canada 'not tumbling', that is just not true. ALL world markets are tumbling. Some have further to fall, but all are tumbling to the same low. Canada will not survive unscathed, and to think it can is just Nationalust delusion.
02:08 PM on 10/07/2011
David, our "hopelessly over regulated" healthcare system is one of the things that makes Canada the great country it is. It is not perfect but far better than the for profit system south of the border. I just Googled private MRI clinics in Canada and there appears to be quite a few across the country. If we had a private American healthcare system you might personally make a few bucks more but that would make us like what, Americans.
HUFFPOST COMMUNITY MODERATOR
CeeCee
Salta prima di inacidire
04:07 PM on 10/07/2011
Agreed.
I take exception to teh term "hopelessly".
This user has chosen to opt out of the Badges program
photo
CanadaStan
Cogito ergo spud, I think, therefore I yam
07:14 PM on 10/07/2011
Why compare to the US system?
Why not learn from the 29 countries that have better health care than us?
Why this obsession with the US system every time health care is mentioned?

Pavlov's dog was never this predictable.
07:39 PM on 10/07/2011
CanadaStan, if anyone is predictable it is you. I have read your other posts. Instead of trolling get a real job. I won't play this game with you so you can get your nickle. I would advise everybody to ignore you as well.
01:44 PM on 10/07/2011
"odd in a country where you can easily get a marijuana joint in most big cities, but not a private MRI scan; the health care sector remains hopelessly overregulated"

This is simply not true (about the MRI scan). It is a lie that is frequently pedaled by commentators keen to disseminate a false and negative image of universal healthcare.

I live in Vancouver and recently needed an MRI. Although in the end I waited for a free MRI from Vancouver coastal health I also investigated the private options available, of which there are many. I also found out that there are various quality of service available and was advised by a specialist, who I paid to see through his private clinic sooner rather than later, which of the service providers could provide the quality of scan I needed. A quick search online for the other major cities in Canada will reveal a large number of private MRI clinics across the country.
02:35 PM on 10/07/2011
Take a look at the article before accusing him of disseminating "a false and negative image."

He says "in most big cities." And that is true. You can't get a private MRI in places like Winnipeg, Toronto, or out East. But, ya, you can get private scans, particularly on the West Coast and Quebec.

Glad you got the scan you needed. That's what's really important.
04:04 PM on 10/07/2011
you need to google private MRI in Toronto.. comes up with a number of them. If you read the company notes it says you can get a fast and on demand mri...
01:13 PM on 10/08/2011
I did read his article in full.
I also checked my facts and found that you CAN get a private MRI in 10 out of 10 of Canadas biggest cities, including Winnipeg and Toronto. (So my experience was not unique but the norm)

So I stand by my conclusions.

David Gratzer is a Canadian born Physician and is in a position to know the facts but chooses instead to state information which is very clearly not true in this instance.

If you are interested, a quick search online reveals the reasons why he chooses this position and who he is being paid by.
This user has chosen to opt out of the Badges program
photo
01:01 PM on 10/07/2011
Sic transit gloria.

But for now, let's enjoy it. There's jobs in Alberta for those willing to move.
photo
HUFFPOST SUPER USER
bcbailey64
12:32 PM on 10/07/2011
Bravo Canada! Take a bow! Canadian common sense wins the day when it comes to sound economic and social policies. But please don't tell anyone else - our housing prices are skyrocketing!!
http://online.wsj.com/article/SB10001424052702304563104576357373661248928.html
06:32 PM on 10/07/2011
That is our very own economic crisis building. A bubble that must eventually burst, already the price of a roof over your head is driving many fully employed people into poverty