The Scales Have Tilted Too Far – Part 2

Canada shows what we could have had, if only.

Photo by Getty Images for Unsplash+

Several months ago I posted an essay suggesting that American culture overemphasizes individualism to the detriment of community. In response, a Canadian, Alice Goldbloom – who writes a wonderful Substack newsletter of her own called A Considerable Age – sent this note:

“I think you have hit on what makes your country fundamentally different from mine. I can assure you the vast majority of Canadians put community first. After that it is a major discussion how to implement, how far to go, how to divide resources.”

I was thinking about her note when I had the opportunity to spend four days in Toronto. While that is hardly enough time to make a definitive study of Canadian culture, it was long enough to register several observations about the differences between the U.S. and its neighbor to the north:

1. Canadians follow the rules. When the sign at the intersection says, “Don’t Walk,” Canadians don’t. They wait for the “Walk” sign. Can you imagine this happening in New York City, or any other American city for that matter? Canadians are either more law-abiding, or else they’re just not in that big a hurry. Or maybe both.

2. Littering is the same story. There are no signs warning people not to litter. There’s no need for them. Americans drop litter anywhere because it’s convenient. Canadians don’t litter because, I suppose, they respect shared common spaces.

3. Public parks are plentiful. In addition to one amazing recreational area on an island in the city’s harbor, there are parks in neighborhoods and downtown. They are clean (naturally), well maintained, and widely used. This suggests a society that sees the value of investing in amenities that the entire community can enjoy. By comparison, recreation spending is among the first items to be sliced from government budgets because it is viewed as a non-necessity.

So based on these observations, I am inclined to agree with Alice that Canadians are more community minded. Here are some other indicators that I found with a modicum of research:

Canada’s crime rate is nearly double that of the U.S., but violent crime is about one-third of the U.S. rate. (Canada’s criminal class must be partial to more polite crimes like auto theft and burglary.) Canada addressed its split between English and French colonial legacies by making the entire nation bilingual, as well as welcoming immigrants from India, East Asia, and other British Commonwealth nations. The U.S., meanwhile, is tearing itself apart over immigration policy. While the U.S. touts “life, liberty, and the pursuit of happiness,” – all three aspects of individualism, by the way – Canada’s watchwords are more social: “Peace, order and good government.”

But the ultimate test, I thought, would be how older adults fare in the two nations. Is either Canada or the U.S. a fit country for old men (and women)?

Short answer: Canada is more generous to elders. Only 4.7% of Canadians age 65 and older live in poverty, half the rate for older Americans. Canada has three types of pension plans. Old Age Security, funded by general tax revenues, pays benefits to eligible citizens at age 65. The Canada Pension Plan is funded by payroll deductions, like the U.S. Social Security. And a Guaranteed Income Supplement goes to citizens with the fewest resources.

Canada also offers Tax-Free Savings Accounts that, like the Roth IRA, let employees accumulate savings that are untaxed. Canada’s plan allows more flexibility to young taxpayers.

The biggest difference is health care. Canada’s universal healthcare system, financed by taxes, covers essential medical services for all citizens for their entire lives. There are no co-pays or deductibles. In the U.S., Medicare is limited to citizens 65 or older and does not cover most vision, dental, or hearing care costs.

But the Taxes…

Yes, it is true. Income taxes are higher in Canada than in the U.S. But look at what you get for those taxes: Universal healthcare. Real income security in old age. Beautiful recreation spaces. Good governance.

Moreover, your “highly taxed” Canadian does not have to worry about paying $2,000 annually out of pocket for healthcare, as one in five Medicare recipients do, nor does he have to set aside $413,000 to comfortably afford Medicare premiums and out-of-pocket medical costs, as some retired couples with high-cost prescriptions will need, according an Employee Benefit Research Institute study.

I have lived in low-tax, low-services states and in high tax, high services states. As a matter of personal preference, I will take high quality education, smooth roads, and nice parks any day over ignorance, potholed streets, and under-funded recreational facilities.

I’m not moving to Canada myself. All I’m saying is that Canada, with origins quite similar to our own, has chosen a different path to achieve “peace, order, and good government” by achieving a better balance between personal liberty and social good.

We could have a system as generous as Canada’s if we weren’t so hellbent on defending the right of the richest to have more and the freedom of everyone else to have less.