Back in 1989 I was given responsibility in my business brief for my bank’s business in Canada. At the time, that consisted of one office in Toronto that took the form of what was called a Schedule B bank, which was basically a small banking office that performed all the basic functions of a bank. The operative word in that description is small. Canada was approximately 10-11 times smaller than the U.S. economy. The United States had annual GDP of ~$5.9-6.0 trillion USD, where Canada had a GDP of ~$570-580 billion USD. The U.S. had roughly 9-10 times Canada’s population in 1990 (250 million vs. 27 million) with a per capita GDP that was quite similar – the U.S. was only about 10-20% higher per person. These ratios have remained fairly consistent to this day, 35 years later. Both economies have grown significantly since 1990. Both are wealthy, developed economies with similar standards of living. The U.S. has advantages in scale, diversity of industries, and global financial influence. The size difference reflects population more than productivity – Canadians and Americans had relatively similar economic output per person in 1990. But I noticed something slightly different in the Canadian cultural mentality. They were more collectivist than America…some (especially when paying their taxes) would have said they even leaned towards socialist.
In 1990, due to a step back in my career, I was asked to go to Toronto to directly run the Canadian operation. It was a meaningful reduction in my duties (I was being punished for what was called an act of omission in not preventing a large loan loss….strangely enough, perpetrated by a Canadian client who resided and did business in Memphis). So, I moved to Toronto for two years to serve penance and feel I learned a lot about humility (my banking Icarus wings had melted in the span of a month) and about Canada and Canadians in the meantime.
Canada has 10 provinces and 3 territories. They are:
1.Ontario – Capital: Toronto (most populous province),
2.Quebec – Capital: Quebec City (largest by area, predominantly French-speaking),
3.British Columbia (BC) – Capital: Victoria,
4.Alberta – Capital: Edmonton,
5.Manitoba – Capital: Winnipeg,
6.Saskatchewan – Capital: Regina,
7.Nova Scotia – Capital: Halifax,
8.New Brunswick – Capital: Fredericton,
9.Newfoundland and Labrador – Capital: St. John’s,
10.Prince Edward Island (PEI) – Capital: Charlottetown (smallest province),
…And then the 3 Territories: Yukon,Northwest Territories, and Nunavut (newest territory, actually only created later in 1999).
The country operates almost like five distinct regions. There’s Atlantic Canada, consisting of Nova Scotia, New Brunswick, PEI, Newfoundland & Labrador. There’s Central Canada with Ontario and Quebec (culturally as different as England and France, as reflected in their relative heritage). There’s the Prairies of Manitoba, Saskatchewan, and Alberta. The West Coast is all British Columbia. And, finally, there’s the great North where the three territories exist in their cold loneliness.The national capital is Ottawa, Ontario. It’s a patchwork country like the U,S,, but what seems to bind it is a collectivism, which I always felt was a reflection of the more harsh northern conditions it had to endure more so than much of the United States.
The key cultural differences between the U.S. and Canada (and Mexico as well…good to keep the North Americans together in context) are that the United States has a strong emphasis on individualism and personal freedom and we are a constitutional republic with a federalist system (if you are Republican you choose between a federalist and states rights system based on your needs of the moment). Canada balances between individualism and collective welfare and has a multi-party parliamentary system under a constitutional monarchy (British Crown), but, as noted, with distinct regions. And then Mexico is more collectivist with family and community orientation (the Catholic Church is historically influential culturally) and growing democratic traditions (historically one-party dominance) with a federal republic with strong regional identities. All three are relatively large, spread out countries geographically so they are similar in needing to balance regional and federal identities, but the U.S. is far less collectivist than either of its neighbors and those differences are becoming more and more stark at the moment.
In terms of social values, the U.S. has always been guided by the “American Dream” with its emphasis on self-made success, a direct communication style, strong work ethic (longer hours, less vacation time) and a more comfortable attitude about wealth display. Canada has been about politeness and modesty valued (“sorry” culture), which probably came from its stronger and longer British roots. That has also given it a more reserved, indirect communication protocol. It embodies a multicultural mosaic approach (vs. the melting pot of the U.S.) and there is a generally greater emphasis on work-life balance. Mexico has an ethos where family is central and extended family ties are also very strong. Due to its Latin heritage, it tends to have a warm and expressive communication style, albeit with a “Mañana” culture where there is more flexibility about time. There is more respect for hierarchy and elders (respeto) and personal relationships are valued over punctuality per se. Language is an important dimension as well for these social values. In the United States, the melting pot means everyone is encouraged to learn English though there is also a growing Spanish-speaking population. Canada is officially bilingual (English and French) and its global and multicultural tendency shows up in its varied language landscape in its cities. Mexico is very much Spanish dominant though there are 68+ indigenous languages still spoken around the country (both the U.S. and Canada did a clean sweep of indigenous culture over the years).
In terms of class and social mobility, the United States holds a strong belief in upward mobility where more income inequality is accepted while there is less class-consciousness in daily life. Canada tends to have more egalitarian values. It believes in the value of a stronger social safety net and hence there is also less of a wealth gap than in the U.S.. Mexico has more visible class distinctions than either the U.S. or Canada. Historically, Mexico has a more rigid class structure, but there is a growing middle class and education is increasingly key to mobility.
Donald Trump has literally declared war (trade war) on both Canada and Mexico. Both have toyed with some degrees of reconciliation and “playing his game” by being sycophantic to his ego, but both have drawn clear lines in the sand. The history of our North American continent is such that we have certainly had historical conflict both north and south. Mexico has had a tougher time with the U.S. over the years. That relationship began with significant tension during the Texas Revolution (1836) and subsequent Mexican-American War (1846-1848) which resulted in Mexico ceding roughly half its territory to the U.S. through the Treaty of Guadalupe Hidalgo. This included present-day California, Nevada, Utah, Arizona, New Mexico, and parts of Colorado and Wyoming. The war left lasting resentment in Mexico. The U.S. furthermore diddled with Mexico during the Mexican Revolution (1910-1920) by interventions like the occupation of Veracruz (1914) and Pershing’s Expedition (1916-1917) pursuing Pancho Villa.
The relationship with Canada began with hostility during the American Revolution when American forces attempted to invade Canada to bring it into the rebellion against Britain, but failed. The War of 1812 saw the U.S. again invade Canada (then British colonies), with Americans burning York (Toronto) and British forces famously burning Washington, D.C. in retaliation (the biggest destruction of our White House until DJT tore down the East Wing without approval of the American people). The war ended in stalemate, but helped define the border and gradually led both sides toward peaceful coexistence. The relationship between the United States and Canada is still one of the closest and most extensive bilateral relationships in the world. What has made the North American Alliance work so well for several centuries is that both Canada and Mexico acknowledge the dominance of the U.S. and all the benefits it brings them, but the U.S. has been wise enough not to lord over them (at least not for most of the last century). Now that is changing under Trump…based almost solely on his own ego and need to be the biggest bully on the continent.
Mexico has many favorite pork dishes. There are carnitas, chicharrón, and chorizo. Canada has its lean and tender bacon. But the U.S. has always favored ham. That seems especially our preference at this moment with Trump, though some of us would suggest that his social media posts, like his recent anti-Canada ones, are more spam than anything.