The vaunted American Nanny State

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The vaunted American Nanny State


......................The vaunted American Nanny State


Some arithmetic sheds light on the American Nanny State. If fact the America government sector is larger than that of Canada relatively, it out spends us. This is when you adjust for the fact the American dollar goes farther than the Canadian dollar.


Everyone has heard that American dollars go further than Canadian dollars, things are cheaper south of the border, and technically this is caught be "ppp", purchasing power parity. One measure puts the Canadian dollar at .82 of the US. This means while in Canada the governments collectively spend 40% of the GDP while in the USA they spend 36% the 36% corrects to a nominal  44% in spending power. They spend about 3% more on defence so in the end you have government spending at about the same level of spending, 41%


It's of interest to look at the differences in health spending through ppp as well. In Canada about 10% of the GDP is spent on health while in the USA it's a whopping 17%. Adjust the spending for ppp you get 17/.82= 21% in relative spending. That is the Americans out spend us by 21/10 = 2.1 on health. They say the USA has superior health treatment, that their private enterprise system of health works but in fact they out spend us 2.1 to 1.


Canadian government spend about 6% of GDP on health while a little know fact is the America governments do spend a similar 6%. Adjusted for ppp they spend nominally 7.3% through their governments. They out spend us with their Medicare and MediAid.


For ppp