Who Is The Real Loon?

I remember not long ago that if you found a Canadian coin in your change you would get angry.  I remember seeing dual pricing on magazines.  It might be $US 2.25 but it would cost you $C 3.25.

How times have changed in a few short years. This chart shows the change in the US Dollar vs. the Canadian "Loonie" (the nickname for the Canadian dollar since a loon is on the back of the dollar coin).  10 years ago a Canadian dollar was only worth about 65 cents.  It is now worth about $1.05!

An editorial in today's Wall Street Journal points out that as the Canadians moved to more conservative policies over the last 10 years its economy and fiscal position has dramatically improved.  This success has also been noted by the voters who gave Conservative Party leader Steven Harper a landslide vistory in Monday's national election.

10 years ago Canada's net government debt was about 60% of GDP.  The U.S. was about 35%.  Canada's net debt is now at 35% and the U.S. is at 80% and heading for 100%.  Since Harper took over in 2006 they  have cut taxes, kept a rein on government spending and have continued a willingness to exploit their rich oil and mineral deposits that began in earnest a decade ago.  The tax cuts included a reduction in the general sales tax from 7% to 5% and a cut in the corporate income tax rate to 16.5% with another reduction to 15% scheduled for 2012.  The U.S corporate tax rate is 35%.  Harper states that he is planning to balance their budget by 2015.  We are expected to be another $1 trillion in the red.

It has been a long time since I have found a Canadian penny in my change. Who is the real loon?