Baraka_Guru

Well, it's odd to think about it that way, because if you account for inflation, the U.S. is spending as much on the military as it was during WWII. However, expressed as a percentage of GDP, it's quite different (15 to 35% of GDP during WWII vs. under 5% of GDP today).

It could be argued that the social democratic aspects of the Canadian economy acted as a stabilizing force during this recession.

Our five biggest banks (representing the lion's share of Canadian banking) have remained profitable the whole time---well, more than that: I think most of them have been reporting record profits. Now Canada's banking system is being looked at as a model to the world. What's the big deal? Regulation.

Canada's economy is a prime example of a mixed economy, where private ownership is the norm, but some industries have either minimal or major public ownership. The public ownership is used to ensure certain standards are met. Otherwise, the economy is subject to government regulations that have been established to ensure fair competition, consumer safety, safe and fair working conditions, etc.

Though most think in absolute terms (capitalism vs. socialism), it is best to understand the Canadian economy as a market economy with extensive public ownership and reasonable regulatory practices, which essentially means that there are many government businesses and agencies that act within this market economy.

It's about providing balance to the practice of capitalism. If left unchecked, it tends to stomp on people.

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Knowing that death is certain and that the time of death is uncertain, what's the most important thing?
—Bhikkhuni Pema Chödrön

Humankind cannot bear very much reality.
—From "Burnt Norton," Four Quartets (1936), T. S. Eliot