Seems like every television economist these days is talking recession. If we make another quarter of "slow growth", it will be official too. But whatever happens, you can plan on a year of bad economic news and likely much tightening of belts in the US.

Do you have some resources that would help you sail through some tough times?

Eh...most of what they call the economy is based on things you don't actually need.

Eh...most of what they call the economy is based on things you don't actually need.

B-I-N-G-O! That has been the whole problem for quite a while.

As far as tips...stay out of debt, save money and don't spend what you ain't got!

Aaron:)

Eh...most of what they call the economy is based on things you don't actually need.


You mean stuff like jobs, housing and food?

The recession started years ago. The prices of food, fuel, and utility costs are not counted in the governments calculations of inflation. They do this so they can lie to the citizens and give a false impression that they are doing a good job.

I buy the least expensive foods most of the time because I prefer less processed items. Three years ago I could buy bananas for 39 cents per pound. Now the cheapest I can find cost 54 cents per pound. +38%

A loaf of the store brand whole wheat bread was 89 cents three years ago. Now it sells for $1.26. +42%

Regular gasoline was $1.50 per gallon three years ago. Today it is $3.12. +208%

One gallon of 100% grape juice was $2.95 now it sells for $4.25. +44%

Ground beef cost $1.49 per pound about three years ago and now I pay $3.11. +209%

Though the price of cars only goes up a couple hundred dollars each year that doesn't make much of a difference to people who are without cars. Food and energy costs are more important to me.

If you have a 401K or IRA invested in a mutual fund, you should check to see where those funds are allocated. If they're spread out into banks and mortgage companies you should reallocate them to a commodities sector before you lose everything.

Excellent post smallwheels.

If your income has even kept pace with your expenditures over the last five years you are truly in the minority.

Lately, American consumption of goods and services has been powered by cheap credit and cheap energy. We've certainly bumped up against our national credit limit and we've arguably run into a shortage of cheap energy. The upcoming recession will reduce American consumption by an amount that brings it back in line with our national income and the credit and energy constraints.

What's not yet settled is who has to reduce their consumption of goods and services, and by how much. When for example the Federal Reserve intervenes with an extraordinary cut in the federal funds rate, it shifts the economic losses from one group of people to another in a complicated and somewhat unpredictable way. All the economic players will position themselves as best they can with tactical investment moves and attempts to influence government policy. What's going on right now is the world's highest stakes poker game.

From the car free living point of view, the less you are personally dependent on cheap energy and cheap credit the better off you will be.

******ed?

Eh...most of what they call the economy is based on things you don't actually need.

...Like jobs?

People are just discovering that we can't keep funneling so much money to the rich and the military and maintain a balanced budget. Funny, we were warned about it in 1961 by President Eisenhower. You can bet that those in power still aren't listening.

The proposed cures for this recession are like curing a junkie by giving him more heroin. He'll feel better for a while, but the fundamental problems remain or are worsened.

I'm just happy that I've gotten out of debt, have some money saved, a cheap apartment and don't support a car.

I buy the least expensive foods most of the time because I prefer less processed items. Three years ago I could buy bananas for 39 cents per pound. Now the cheapest I can find cost 54 cents per pound. +38%

A loaf of the store brand whole wheat bread was 89 cents three years ago. Now it sells for $1.26. +42%

Regular gasoline was $1.50 per gallon three years ago. Today it is $3.12. +208%

One gallon of 100% grape juice was $2.95 now it sells for $4.25. +44%

Ground beef cost $1.49 per pound about three years ago and now I pay $3.11. +209%
.

Ouch, Smallwheels where do you live? The old prices are about on par with what I am still paying in Houston at Kroger's. Excluding gas of course. Not sure about grape juice, I buy frozen conentrate grape(easier to transport) for about $1-1.69 depending if I get generic or name brand.

Eh...most of what they call the economy is based on things you don't actually need.

WAP!

I liked that. :D great point. I've convinced myself I "need" a lot of things:rolleyes: air conditioning, a nice little house, the phone, computer, stereo... etc etc.

Unfortunatly, if very many folks decided they didn't "need" so much, my job would be in danger. then i would not be happy.

Thing to remeber about this "recession" is that it's (so far) only financial institutions that have gotten themselves in trouble. they are greedy by nature and are 'paying the piper" for lousy investments over the last few years. All the big industries are just fine. Take a look at the companies that make up the Dow Jones 30: only 4 are tied to the financial sector. the other 26 are doin just fine.

the global economy is in fact just fine. I sure hope panic over one sector does not drag us down into a real recession for no good reason!:eek:

More like McMansions, Land Yachts, and imported foods and services.

CE
Uhh yea sure--because recessions only affect people who live frivolously.....
~

The recession started years ago.
Yea, like back when Nixon closed the gold window.
The prices of food, fuel, and utility costs are not counted in the governments calculations of inflation. They do this so they can lie to the citizens and give a false impression that they are doing a good job.
Exactly.
I ran across an economic blog post somewhere that had a chart--if the US was still figuring inflation the way they did in 1983, then the rate would be TWICE as high--over 8%, instead of the 4% that the government now claims.

The economy is going to be THE issue in this election, with the Iraq war a minor second.

After election day I'd bet gas prices will go up real quick, and we (in the US) are going to see a lot more people bicycling--but they aren't going to be happy about it......
~

Unfortunatly, if very many folks decided they didn't "need" so much, my job would be in danger. then i would not be happy.

It's very likely that as gas prices go up, people will decide that what they really "need" is gasoline (and heating oil), and will buy those items instead of whateve you make at your job.

Thing to remeber about this "recession" is that it's (so far) only financial institutions that have gotten themselves in trouble. they are greedy by nature and are 'paying the piper" for lousy investments over the last few years. All the big industries are just fine. Take a look at the companies that make up the Dow Jones 30: only 4 are tied to the financial sector. the other 26 are doin just fine.

the global economy is in fact just fine. I sure hope panic over one sector does not drag us down into a real recession for no good reason!:eek:

It sounds like you're reading last week's financial pages. Every stock market in the world lost 5 % or more of value on Monday, although many made a partial recovery yesterday. The economy has become the biggest issue in the Presidential race, which a couple weeks ago focused on the war. High food prices are hitting the developing world much more than us. People are hurting especially because of food oil prices. A lot of food oil (7 %, IIRC) is being used for biofuel now, increasing demand. Oil is a major source of calories for billions of poor people. And of course it's costing more to transport all food, and that cost is ultimately paid by consumers.

Thing to remeber about this "recession" is that it's (so far) only financial institutions that have gotten themselves in trouble. they are greedy by nature and are 'paying the piper" for lousy investments over the last few years. All the big industries are just fine. Take a look at the companies that make up the Dow Jones 30: only 4 are tied to the financial sector. the other 26 are doin just fine.

the global economy is in fact just fine. I sure hope panic over one sector does not drag us down into a real recession for no good reason!:eek:

My understanding was that the definition of a recession was six months of a shrinking economy. While the rate of growth of our economy is at it's lowest point in decades, we have not yet had even one month with a shrinking economy since 2001-2002 (except in a handful of states, and their economies have been in trouble for awhile). My impression is that what we are seeing is a global market correction directly related to the large amount of cheap cash that became available when some global financial institutions seriously dropped the ball in their cost-risk-pricing formulas. Couple this with a news media always looking for the "new thing to fear" and a lame duck president looking to leave with the same budget crippling tax breaks he entered with and we have the hype of a recession.

Given the rate of increase in energy costs, the ever growing budget deficit, and the Feds willingness to throw caution to the wind and cut the bottom out of the prime rate, I'm more worried about inflation. But inflation doesn't make a good story because people would have to admit that energy prices have reached the point where they need to find ways to cut back on driving, heating, and cooling.

Either way I think one great way to recession/inflation proof your family is to ditch or at least limit the use of your car. The second thing is to make sure you have savings to protect you from a job loss. A fair chunk of my savings are in an inflation protected mutual fund, although it remains to be seen how good that inflation protection is...

Of course I'm no economist and ymmv.

It's very likely that as gas prices go up, people will decide that what they really "need" is gasoline (and heating oil), and will buy those items instead of whateve you make at your job.

It sounds like you're reading last week's financial pages. Every stock market in the world lost 5 % or more of value on Monday, although many made a partial recovery yesterday. The economy has become the biggest issue in the Presidential race, which a couple weeks ago focused on the war. High food prices are hitting the developing world much more than us. People are hurting especially because of food oil prices. A lot of food oil (7 %, IIRC) is being used for biofuel now, increasing demand. Oil is a major source of calories for billions of poor people. And of course it's costing more to transport all food, and that cost is ultimately paid by consumers.

actually I work (indirectly) in the food industy, and we all like to eat, so here's hoping that even IF a recession hits, I still bring home the paycheck:rolleyes:

On the financial side: to my knowledge, nothing has changed significantly in the last year or so other than that a) overpriced real estate sold to folks with poor credit is correcting and b) (in a related move) financial companies overexposed to poor debt are suffering. woop dee do. The pin-striped-suit set might have to switch from real Cubans to the fakes. cry me a river ;)

Yep the dollar is weak, lots of supposed reasons for that, choose whichever sounds good to you. but even the dollar has been staging a recovery since Nov last year.

Food - we have too much anyway. too many fat people. Turn all the grains into oil, burn the oil in cars, put the world on a diet. It'll be good for them ;) (tounge firmly in cheek).

The economy is now a big issue in the race cause it's an easy excuse to sling mud around & getting a lot of press recently. A volitile market does not a recession make.

I am very dissapointed in the Fed cutting rates... Inflation is just a fancy word for TAX. this TAX is what is paying off the bad bets the financial companies have made over the last few years, at the average citizen's expense. Ah well, I'm used to paying for crap that I'll never get any use out of like Medicaid, Social Security, etc. Bring it on :(

My understanding .......

Of course I'm no economist and ymmv.

All good stuff and I'm right there with you bike2math, except on the tax breaks, which I think are always a good thing. I personally spend more on taxes than anything else. but spending cuts need to go with tax breaks, otherwise it just puts off the pain:rolleyes:

Lately, American consumption of goods and services has been powered by cheap credit and cheap energy. We've certainly bumped up against our national credit limit and we've arguably run into a shortage of cheap energy. The upcoming recession will reduce American consumption by an amount that brings it back in line with our national income and the credit and energy constraints.


For most individuals and probably most communities, there is a way to respond to an emergency situation like a recession. Yes, it is necessary to cut back on cheap energy and credit.

A possible way to do this is to look at all the resources you have available. An obvious one for most readers here is to keep using the bicycle as a means of transportation.

However, it may also be a time for looking into other cost-cutting measures. Trying to keep the utility bill down. Getting rid of the cell phone. Growing your own potatoes instead of buying them. Trading services with someone else.

Of course, all of this presumes you still have a job or at least some small, steady income.

WAP!

I liked that. :D great point. I've convinced myself I "need" a lot of things:rolleyes: air conditioning, a nice little house, the phone, computer, stereo... etc etc.

Unfortunatly, if very many folks decided they didn't "need" so much, my job would be in danger. then i would not be happy.



Think I have said this before, but we can all work less hours (i.e. more play (bicycling!!!!)) because we don't have to buy as much unneeded junk. If you cut out all of the superfluous crap purchases (cars, nick nacks, igizmos, salad shooters, etc.) we can actually work less, which means we can bicycle more!!!!!

The economy is going to be THE issue in this election, with the Iraq war a minor second.


~

Most people don't know they are both related. We're in a recession right now because the federal reserve dropped interest rates to historic levels to keep us out of a recession since out government was spending billions for the war. This caused the real estate boom with every one buying homes they could not afford but now that it imploaded, the federal reserve is right back to lowering interest rates to prop up the economy. This time, it's not going to work. We're about to go into a deep recession.

.

I'm just happy that I've gotten out of debt, have some money saved, a cheap apartment and don't support a car.

You sound like me! ;-)

Unlike the last recession, I have a much better job, cheap apartment, 4 years of rent saved and don't support a car. Bring on the recession. Thanks to being carfree, I'm ready!

Most people don't know they are both related.

I get this feeling that its like during the 1970s. Didn't we go way into debt over a war and then got stagflation right after oil prices went up? As I recall a lot of people in my town started getting around by bike back then. Is it a pattern?

where the $$ goes:

http://www.washingtonpost.com/wp-srv/politics/interactives/budget07/categoryPie07.gif

what makes me depressed is there's over $30,000 of national debt for every one of the 300+ million americans. Scary.

******ed?

I think the R word is "Recession", in this case.

Well, y'all go ahead and have your recession if you wish, I'm not going to participate! :p

Well, y'all go ahead and have your recession if you wish, I'm not going to participate! :p

Me either but it is kind of hard when your job might go away. Only really bright spot as far as I am concerned is I don't have to have it:D but being able to buy new bike stuff and eat regularly have their advantages:p

Aaron:)

You sound like me! ;-)

Unlike the last recession, I have a much better job, cheap apartment, 4 years of rent saved and don't support a car. Bring on the recession. Thanks to being carfree, I'm ready!

Good, but keep in mind that in inflationary times, cash savings are a very bad thing to have. That 4 years of rent is shrinking all the time, and we haven't had "bad" inflation yet. Too bad you can't just pay the 4 years of rent in advance. That would be a perfect inflation hedge.

where the $$ goes:

http://www.washingtonpost.com/wp-srv/politics/interactives/budget07/categoryPie07.gif

what makes me depressed is there's over $30,000 of national debt for every one of the 300+ million americans. Scary.

Another depressing thing is the 3 % that goes to transportation. Us carfree folk are sure not getting our money's worth on that one!

People are just discovering that we can't keep funneling so much money to the rich .

Of course you realise the rich pay most of the taxes. And your job is likely provided by a rich person, or many rich people.

Go ahead piss off the rich, increase taxes even more on the rich, and you'll find yourself out of a job.

First thing we did at my ( and my partners) company when Ky. increased the minimum wage was fire two people. Increasing the minimum wage did them alot of good. Raise my taxes? And I'll have less to spend on my buisness, or may even have to cut some more employees.

Like it or not, the rich likely make your type of life possible. Don't piss them off.

where the $$ goes:

http://www.washingtonpost.com/wp-srv/politics/interactives/budget07/categoryPie07.gif



What the heck is "Income Security 13%"?

Of course you realise the rich pay most of the taxes. And your job is likely provided by a rich person, or many rich people.

First thing we did at my ( and my partners) company when Ky. increased the minimum wage was fire two people. Increasing the minimum wage did them alot of good. Raise my taxes? And I'll have less to spend on my buisness, or may even have to cut some more employees.

Like it or not, the rich likely make your type of life possible. Don't piss them off.

Are you threatening us? Trying to cow us into submission?

Tax rates on the truly rich are pretty low in this country. And their tax deductible political contributions can buy valuable favors from the government, such as the breaks that Enron got from Bush within days of his being sworn in as President. That allowed them to almost break the state of California with outrageously jacked up energy prices. That taught California that there are penalties to voting against Bush.

Don't be blinded to the fact that everyone contributes. When you fired two people that hurt you too. If you are that tight economically, you are not among the rich.

I think that the person you were responding to was not talking about honest small businesses like yours, but rather fat-cat companies like Halliburton where they get fabulous no-bid contracts with no oversight. That's funneling cash to the rich. That's obscene.

Keep your eyes peeled. If they treat their own employees badly, how will they treat small competitors like you?

You forgot to say "Let them eat cake"

CE

No, eat the rich.

Are you threatening us? Trying to cow us into submission?

?

Answer to the first to questions; no, but remember when the rich have less money, they have less money to pay you.

Have you ever received a paycheck from a poor person? I haven't.

You forgot to say "Let them eat cake"

CE

No let them eat whatever they can afford, using the money they have earned. And don't steal money from me to feed people who haven't earned anything.

Freedom isn't just the freedom to succeed, but the freedom to fail.

Well, y'all go ahead and have your recession if you wish, I'm not going to participate! :p

Word. Everyone is getting awfully uppity about the national (or federal, methinks) economy, but we're prone to neglect our local economies. If you ignore the foundation, it shouldn't come as a surprise when the top starts to cave.

If you wouldn't drive 50 miles to a superstore, why send your money that far away?

First thing we did at my ( and my partners) company when Ky. increased the minimum wage was fire two people. Increasing the minimum wage did them alot of good.
If you fired two people because the minimum wage went up, it meant the rest of the staff had that much more work on their plates. If your employees are burning out or getting frustrated because of an increased workload, it's going to cost your company in the long term.

If you fired two people because the minimum wage went up, it meant the rest of the staff had that much more work on their plates. If your employees are burning out or getting frustrated because of an increased workload, it's going to cost your company in the long term.

Who really cares what happens to a company that can't afford to pay minimum wage? It's not exactly the bedrock of the economy.

Who really cares what happens to a company that can't afford to pay minimum wage? It's not exactly the bedrock of the economy.

Some of the wages these people receive are really unbelievable. But what is more unbelievable is that as a society we keep defending organizations that are built on a workforce held in abject destitution... people who have to work multiple jobs and then often cannot afford health care.

It has been remarked that the once egalitarian US is now seeing a rapid economic gap between its richest and poorest citizens. Could it be reversed?

I hate taxes. Taxes are the one thing that is financially destroying the population of the USA. The country worked just fine without any taxes for more than a hundred years. The country got money from tariffs on imported goods.

Here is what I explained to people in the addendum to my book "How to Be Debt Free Fast!" (electronic version, not the paper version); Nobody who has a job pays less than 50% in taxes.

Single earner at the low end paying 19% Federal income tax.
State income tax 4%
Sales tax 9% in New Orleans
Social Security tax and Medicare 7.62%. It is 15.3% if you are self employed.
Hidden Tax which is all of the taxes on all the businesses in the chain of production and distribution of goods for sale added on to the price of ALL THE THINGS YOU BUY 10-25%
Property taxes paid by homeowners or passed on to renters. From a few hundred dollars to several thousand dollars.
Property taxes are much higher in states that don't have a sales tax.

Add on to those the fees for different services such as your telephone bill, sanitation, water, parks, and all the other ways local governments tax you and even the poorest working people are paying over 50% of their incomes in taxes.

Those who believe the rich need to be taxed more need to fully understand how much the government is working to keep everyone poor.

Counting only the Federal income tax, the Social Security tax, and the hidden taxes for the lowest income people equals 36.62-51.62%.
How many of you here knew that? Add in all the other taxes and fees and see how much you really pay.

I would prefer all the government income to come from tariffs on imported goods and not income taxes. This would create manufacturing jobs in this country. Sure prices would go up but not by much. By removing taxes on businesses our exported goods would be more price competitive, which would create more jobs.

The only tax system worth having is fully explained at www.fairtax.org. It is a national retail sales tax that does not tax the poor below the poverty line. Nobody would pay sales taxes for income less than the poverty line. Only income above the poverty line would be taxed.

The tax rate would be just 23% INCLUDING the Social Security and Medicare taxes. Check it out.

smallwheels,
I have to agree there are more hidden taxes in the US than people realize. I co-own a small business and see them everyday. FWIW we pay our people better than a certain large name retailer. Unfortunately we can't afford to pay health insurance for our folks. But most of them are part time (they prefer it that way) and have coverage from other sources.

If you look at part of what led to the great depression, among other things it was the disparity between the haves and the have nots.

Oh and BTW that economic stimulus package...where everybody gets some bucks to spend? Check it out, you have to report it on the next year of taxes and where did it come from to begin with...your right pocket or your left pocket.;)

Aaron:)

I hate taxes. Taxes are the one thing that is financially destroying the population of the USA. The country worked just fine without any taxes for more than a hundred years. The country got money from tariffs on imported goods.

I love taxes. No, I'm not being facetious or sarcastic either. If it weren't for the money we're paying in taxes, we wouldn't have a lot of the benefits we enjoy. In Canada, these include the following:
• A government-funded medical system
• An amazing social safety net, including employment insurance, welfare and old age benefits
• A public road network
• Public schools
• Police and protective services
• Emergency services if a disaster strikes
• A provincial and national parks system
• And many more...
As long as the various levels of government are spending my money responsibly, I have no problem paying into the system. The problem comes when governments spend irresponsibly. I worked hard for the money the government gets. I expect them to spend it as carefully as they would spend their own money.

Answer to the first to questions; no, but remember when the rich have less money, they have less money to pay you.

Have you ever received a paycheck from a poor person? I haven't.

The rich are not the only ones who can pay you. And it's not how much money that they have that determines whether you will get paid. It's how much money that they expect to make on your labor.

Actually yes I have received a paycheck from a poor person. Your stereotypical ignorant minimum wage earner, no. But from people who had to borrow to make sure that I got paid. Yes. And more than once. In one job I had, people would race to the bank because the last people wouldn't get paid. We knew that the employer couldn't cover payroll usually.

I cashed a paycheck from a middle class person just yesterday. And I've been an employer and I know that I wasn't rich then.

Answer to the first to questions; no, but remember when the rich have less money, they have less money to pay you.

Have you ever received a paycheck from a poor person? I haven't.

Please define poor...vs rich. Are we talking goverment determined poverty level or?

Aaron:)

I love taxes. No, I'm not being facetious or sarcastic either. If it weren't for the money we're paying in taxes, we wouldn't have a lot of the benefits we enjoy. In Canada, these include the following:
• A government-funded medical system
• An amazing social safety net, including employment insurance, welfare and old age benefits
• A public road network
• Public schools
• Police and protective services
• Emergency services if a disaster strikes
• A provincial and national parks system
• And many more...
As long as the various levels of government are spending my money responsibly, I have no problem paying into the system. The problem comes when governments spend irresponsibly. I worked hard for the money the government gets. I expect them to spend it as carefully as they would spend their own money.

Ramen. The only problem I have with the system is that it is too easily abused. In Northern New Brunswick, for instance, it is commonplace for people to hold "under the table" jobs, claim to be unemployed, and collect unemployment/social security from the government on top of their undeclared wages. Which is paid for by people who actually work and file their income tax truthfully.

And then all the money we blow on sending our troops into the middle east because our politicians collectively pooped their pants when Dubya said "you're either with us or against us" doesn't impress me much either.

But overall, yeah, our society would be very different without taxes, and not for the better.

Some of the wages these people receive are really unbelievable. But what is more unbelievable is that as a society we keep defending organizations that are built on a workforce held in abject destitution... people who have to work multiple jobs and then often cannot afford health care.

It has been remarked that the once egalitarian US is now seeing a rapid economic gap between its richest and poorest citizens. Could it be reversed?

REverse the trend? That's a matter of political power and the will to exert it. Sources of power for the poor are the vote (;)), strikes, protest, labor unions, grassroots politics. All these things are in short supply right now.

Just heard on the radio that home sales were down 26 % last year--largest drop since records have been kept. Without their home equity, most "middle class" Americans are all of a sudden lower class! I sure hope this trend can be turned around. The finance companies are crying about relatively small losses last year, with no memory of the record profits they've turned in each of the previous 10 years.

I love taxes. No, I'm not being facetious or sarcastic either. If it weren't for the money we're paying in taxes, we wouldn't have a lot of the benefits we enjoy. In Canada, these include the following:
• A government-funded medical system
• An amazing social safety net, including employment insurance, welfare and old age benefits
• A public road network
• Public schools
• Police and protective services
• Emergency services if a disaster strikes
• A provincial and national parks system
• And many more...
As long as the various levels of government are spending my money responsibly, I have no problem paying into the system. The problem comes when governments spend irresponsibly. I worked hard for the money the government gets. I expect them to spend it as carefully as they would spend their own money.

I am surprised, but I think Canadians complain a lot less about their taxes... even though they pay a lot more. I'm not sure why that is. In general, I think Europeans also pay a large chunk of their incomes on income tax.

Here's a story from 2005 about rates throughout Europe and North America. Actually, the US is the third lowest.
http://moneycentral.msn.com/content/Taxes/P148855.asp


In fact, in the US, taxes aren't really that high.... but there seems to be a feeling that most citizens are not getting what they pay for. Maybe the 19% national defense expenditure has something to do with it. Not sure...

Gee just think of all the paychecks that would be lost if the "poor" all of a sudden quit shopping at Walmart and started spending their money elsewhere. The poor sign paychecks just as much as the rich. It is just the rich have more options as to where they spend their money. If Walmart was to have to suddenly close 50% of their stores, I seriously doubt they would continue to pay their "associates" out of the goodness of their hearts.

Aaron:)

Others who gladly accept paychecks from the poor:

doctors,
lawyers,
payday advance lenders,
tax preparers,
subprime mortgagers,
slumlords,
evangelists,
and other crooks.

I am surprised, but I think Canadians complain a lot less about their taxes... even though they pay a lot more. I'm not sure why that is. In general, I think Europeans also pay a large chunk of their incomes on income tax.

Here's a story from 2005 about rates throughout Europe and North America. Actually, the US is the third lowest.
http://moneycentral.msn.com/content/Taxes/P148855.asp


In fact, in the US, taxes aren't really that high.... but there seems to be a feeling that most citizens are not getting what they pay for. Maybe the 19% national defense expenditure has something to do with it. Not sure...

I think part of the reason is we know where our tax money is going and believe in what we have. None of us in this country would ever want to lose our health care system or social safety net and we know our taxes are paying for it.

But I think another reason is in Canada, we have a sense of ownership when it comes to our various levels of government. We've seen grassroots parties springing up — some within the past 20 years — and becoming major players in government when people have felt a dissatisfaction with the more established political parties. As a rule, we don't usually think of our government as a heavy-handed elitist club, attempting to manipulate us. But if things go wrong, we also can make some changes.