3.3 - Canada's Mixed Economy

13/03/26

how do we determine if smth is a mixed economy?

All economies are mixed – it’s the degree that determines the label

canada’s characteristics as a mixed economy

• public and private ownership:

  • Public-strengthen economy, protect jobs, provide essential services

  • Private: incentive to work, provide empowerment

• Government controls and subsidies:

  • student jobs, agricultural subsidies, low income housing, public transportation, energy sector subsidies

• extensive social programs:

  • family social services, employment insurance, universal health care, canada pension plan, public education, day care subsidies

• progressive taxation:

  • The more you make, the greater the percentage of taxes you pay

    • Seen as more fair by modern liberals

who started canada’s social safety net?

PM Mackenzie King 1935 on

issues with mixed economies

• mismanagement

  • Socialism (government intervention) = bureaucracy and mismanagement

• dependence

  • Encourages people to be reliant on others instead of themselves (paternalistic government attitudes)

• lack of choice

  • Paying for services is very expensive and does not allow people the choice to access better services if they can afford it

• resistance to change

  • Difficulties raising taxes and reducing social programs during economic upswings (hurts the middle class)

specific issues in canada right now

• health care

• recession/tariffs

• income disparity

• cost of living

universal healthcare

pros:

• everyone has access, regardless of circumstances

• healthy workforce = healthy economy

• unifies canadians

cons:

• long wait times

• limited access to services

• bureaucracy

privatized healthcare

pros:

• compettion = more innovation

• shorter wait times

• encourages citizens to strive for a better job with insurance

cons:

• poor cannot afford care = no care

• profit over patients

two-tiered healthcare

pros:

• those who can afford can get faster and better treatment = less wait times for those leaning on the public system

cons:

• ends universality: concerns of disparity

• complicated having two different systems

problems with income disparity

• inhibits social mobility: Rungs on a ladder metaphor (less money = less rungs to climb on)

• Threat to democracy: if a few people control most of the cash, they are better able to control the electoral outcomes