In my oppinion taxes play a very important role in all of this, I guess I pay probably around 90% in taxes. First of all you have personal tax on your income of about 40%, then you pay GST, PST, special gasoline, rtc

What is not so obvious is that whatever you buy, you pay a much higer price for because everyone who made or service what you buy also had to pay taxes. If they had not had to pay taxes they could have sold it cheaper. So tax builds on tax through the supply chain. Our own Ganalane has to charge more for his cattle because he pays taxes, and if his suppliers did not have to pay taxes, he probably could sell his cattle for less than 50% of what he does now and still make more money.

So in these tough times it makes sense that govenments should support people. Doing it right for the future is the tough challenge. The big problem for the western societies is that they do not produce much anymore and they have to import almost everything, thereby digging a hole. I think you already hear this from Washington, the bail-out money should go to 'US-made' stuff. Why bail out car makers if as an example 75% of all the parts(and costs and jobs) are imported from other countries.

I think we therefore will see more protectionism with attempts at growing the manufacturing sector in the US and Canada. The idea that we can sell and survive on services only I think is gone with the wind.