Canadas mixed economy All economies are mixed to
- Slides: 6
Canada’s mixed economy All economies are mixed to a degree because they use ideas from both market (supply and demand, competition) and planned economies (government intervention); however it is the degree of government involvement and the emphasis on equality.
Essential features Incentive of equality for all people Public and private ownership of property Private ownership = feeling of control, provides incentive Public ownership = ideals of equality and economic strength is promoted (usually in areas of national importance, areas of high risk or to protect employment) Joint ownership is often favored Government controls and subsidies Redistribution of wealth social programs and progressive taxation, direct and indirect taxation (GST, airline fuel taxes)
Challenges Paying the price for social programs Difficult to raise taxes and lower social programs during economic upswing (hurts middle class) Large bureaucracies
Progressive Taxation (2008 rates) Federal Taxes 15% on the first $37, 885 + 22% on the next $37, 884 + 26% on the next $47, 415 + * 29% of taxable income over $123, 184 + Newfoundland Labrador 8. 2% first $30, 215 of taxable income, + 13. 3% on the next $30, 214, + 16% on the amount over $60, 429 Manitoba 10. 9% $30, 544 of taxable income, + 12. 75% on the next $35, 456, + 17. 4% on the amount over $66, 000 Ontario 6. 05% $36, 020 of taxable income, + 9. 15% on the next $36, 021, + 11. 16% on the amount over $72, 041 Alberta 10% of taxable income
The top 1% of earners pay more, but what’s in it for them?
Health Care Public Health Care Pro: everyone is taken care of, regardless of income; encourages a healthier populace (workforce) Con: not all treatments are covered, wait times, bureaucratic waste Private Health Care Pro: competition encourages better treatment of patients Con: profit motive encourages corporations to look at profits over patients, not all people can afford it, refusal for some treatments Two Tier Health Care Pro: those who can afford it get out of public system (reduced gov costs and wait times) Con: treatment not universal, brain drain
