Rep. Michele Bachmann’s presidential Twitter account sent out a curious tweet on Monday evening, touting Canada’s lower unemployment rate as a "lesson in economic recovery" and attributing it to the lack of a stimulus program.
Just one problem: Canada did have a stimulus package.
In January 2009, as the U.S. was debating its own stimulus, Canada passed a $40 billion (in Canadian dollars) stimulus package over five years. The Toronto Star reported that Canadian Prime Minister Stephen Harper boasted in April 2009 that Canada was “way ahead” of other countries in using its stimulus funds.
But beyond stimulus dollars, analysts say that Canada has fared better than the U.S. in the wake of the financial crisis because its banks have fared better.
The reason? Regulation.
Talking Points Memo pointed out a 2010 Economist article that said Canada was in better shape because of strict banking regulation and a “boring” financial system. Newsweek wrote in 2009 that Canadian banks didn’t feel the crisis as much because they were less leveraged than in the U.S., as our neighbors to the north didn’t follow Europe and the U.S. in loosening regulations.
While Bachmann is apparently a fan of Canada, but she’s no fan of banking regulation, as she has been one of the most vocal opponents of the Dodd-Frank
en bill that passed last year. She has a bill in Congress to repeal it.