6.7: Comparing Government Interventions – Canada vs. USA

•  I can compare how Canada and the United States involve themselves in their economies.

• I can explain how each country answers economic questions differently.

• I can describe how different governments balance freedom and control in the economy.

Write as many similarities and differences between Canada and the U.S. in how they run their economies.

Use the Venn diagram provided in your notes.

Vocabulary

Regulation - Laws or rules created by the government to control business practices, protect consumers, and ensure fair competition.

Laissez-Faire (let it be or leave it alone) - A belief in minimal government intervention in the economy — the market should operate freely.

Crown Corporation - A business or organization owned by the Canadian government to provide essential services (e.g., CBC, Canada Post)

Economic Continuum - A visual scale showing different economic systems from pure market to pure command economies. Canada and the U.S. fall at different points.

Based on what we have learned about a market and mixed economy, we recognize that there are some similarities and differences between how the American and Canadian economy works. 

Canada

• A mixed economy

• Government plays a bigger role (Crown corporations like CBC or Canada Post)

• Publicly funded healthcare

• Stronger social safety net (Social services)

• More regulations for environment, labour, and safety

United States

• More of a market economy.

• Emphasizes individual freedom and limited government (laissez-faire).

• Private healthcare system.

• The government regulates monopolies and unsafe products but avoids owning companies.

Both Countries

• Regulate monopolies (e.g., breaking up companies).

• Intervene in emergencies (e.g., stimulus packages, bailouts).

• Maintain some free enterprise and individual choices.

On your Venn diagram, use the details from the mini lesson and record the information in each section as it pertains to the differences and similarities between both economies.

Answers

Which country has more government involvement in the economy, and why?

(Use examples from today’s lesson.)

For each of these statements, decide what degree you agree or disagree with the statement:

• The government should control major businesses.

• The government should set limits on how much companies can charge for basic needs like food, water, and housing.

• Essential services like mail delivery and public broadcasting should be run by the government, not private companies.

Select ONE of the statements and explain why you feel the way you do with regards to the degree of agreement.