Concerning whether a downturn in U.S. economic growth affects Canadian economic growth, there is indeed a direct correlation. Due to the closeness of the two economies, and the mammoth size of the U.S. Economy in general, there is no way that any disruption in one country would not be felt in the other. Over the past twenty years, globalization, NAFTA, and an increase in technological capability has only brought both countries financial mechanisms closer. In fact, Canadians are at great risk when the behavior of Wall Street becomes reckless. It is risky behavior, such as that exhibited during the subprime lending crisis, that most affects international financial institutions.[footnoteRef:3] (Somerville 2010) The health of the U.S. economy is vital to the success of Canada's economy, and therefore caution must be placed whenever either country predicts a downturn in the imminent future. [3: Somerville, Glenn. Reuters. January 31, 2010. http://www.reuters.com/article/2010/01/31/us-usa-economy-bailout-idUSTRE60U09L20100131.]
However Canada does have its own ability to handle government spending however it likes. For instance, providing a single payer health care system greatly simplifies the health care process and costs, and ensures that even during an economic downturn, citizens are able to seek the medical treatment they are entitled to. This is a service provided by the government even during hard times, a social responsibility which is lacking in the American public conscience. This is in stark contrast to the United States, which opts to spend heavily on military and defense, while relying entirely on the private sector to provide health insurance for Americans. Among other differences between the nations, the way labor is exported from America to China and other low income nations is not nearly as extreme in Canada. Additionally, Canada's property market was not as heavily affected as in the States, due to better market regulation and less of a reliance on sub-prime loans. [footnoteRef:4] [4: CBC News. Replay of Great Depression Unlikely. September 25, 2008. http://www.cbc.ca/news/business/story/2008/09/25/td-forecast.html.]
In conclusion, we see that the Great Depression has taught all world governments how to evade calamity, but the extent to which government involvement in the market should be permitted is still in heavy contention. The pro-business low tax business class sees Keynes as a man who simply redistributes wealth via tax collection and government spending, meanwhile the middle class typically benefits from the benefits government offers in its ability to stabilize the market and prevent prolonged periods of slow growth and unemployment, periods which are inherent in the instability of the free market.