Implications of Canada's Mixed Economy
Implications of Canada's Mixed Economy
Although the trend followed by most nations nowadays tend to favor mixed economies, the question about planning versus free market still resurfaces every now and then. Throughout history, people have established different types of economic systems that best represent the cultural and social values of the society as a whole. By definition, an effective economic system is believed to be the kind of system that will meet the entire society’s needs and wants. It is also the system that will solve many of the nation’s economic problems. In Canada, years after the free trade agreement with United States and Mexico has been signed, non-conformists and naysayers continue to question the effectiveness and ramifications of the agreement. Whether a more socialist society or a more capitalist point of view leads Canada to economic prosperity, the question whether these systems corresponds to the expected function of an effective economic system lies uncertain considering the fact that economists argue that it is still too early to make accurate economic analysis of Canada’s economic system. However, judging from Canada’s present economic condition, it could be proven that Canada is better off having a mixed economy rather than being either one of the two systems. In fact, looking at the key characteristics of both systems can substantiate this advantage for Canada.
As generally known, planning is a key characteristic of a socialist system. Government planning is the principal concept believed by followers of socialism. In a socialist economy, the government regulates most of trade and businesses. This means that government ownership is widespread and that an individual has little to say about the direction of the economy. Socialists also believed that there should be no extremes or inequalities of wealth or poverty and of power and influence. They are confident that through government planning, these extremes in social status could be minimized. They wanted the government to make economic decisions and also to control the basic resources of the country. They also argued that poverty was brought about by capitalism by allowing wealthy individuals to dominate much of the resources making it possible for them to become more prosperous than the other members of the society. In socialist societies, the government owns most of the services such as transportation, airlines, telephone services and others. The government also provides education, health care and public housing. Although they own major industries, some private...