The reason most Canadians live close to the U.S. border isn’t just about weather—it’s about economics. In truth, socialism is a primary factor. Canada’s social programs and high regulatory burdens make it extremely difficult to build a profitable private business that serves only the Canadian market. As a result, many businesses must rely on American consumers to remain viable. Proximity to the U.S. border gives them better access to that market.
Canada struggles to build for Canadians because the private sector is heavily taxed to support expansive government programs. This makes it challenging to grow industries that require capital, scale, and consistent demand—such as manufacturing, which has been in long-term decline.
Canada Is Attracting Fewer Skilled Immigrants
What’s worsening the situation is Canada’s increasing reliance on low-skilled immigration, while becoming less attractive to the world’s best and brightest. The Canadian economy continues to shift toward service-sector jobs, many of which are directly or indirectly tied to government. This bloated public sector is accelerating the national debt, while the real engine of wealth—resource development and private innovation—is being strangled by red tape.
Austerity Is Coming, Whether We Admit It or Not
I’ve said it before, and I’ll say it again: forced austerity is coming to Canada, whether Canadians accept it or not. Weather only plays a small role in population clustering near the U.S. border. The real reason is that resource development is vanishing in much of the country, and without it, it’s nearly impossible to build entire communities or economies.
Alberta: The Exception That Proves the Rule
The one standout province in Canada is Alberta. While Edmonton and Calgary are its major cities, what makes Alberta unique is its growing population in rural and remote areas. The province’s total population now exceeds five million, with many residents living far from the U.S. border because of career opportunities in oil, gas, and resource extraction—industries that create jobs, communities, and long-term economic stability.
Compare that with Ontario, where cities like Ottawa are located just a short drive from the U.S. border. In Atlantic Canada, heavy dependence on federal transfer payments and welfare discourages investment in resource development altogether. As a result, these provinces offer little economic incentive for businesses—except for those using the region as a stepping stone to trade with America.
Why Donald Trump’s “America First” Agenda Worries Canadians
As of this writing, Donald Trump is once again President-elect of the United States. His “America First” agenda poses a serious challenge to Canada’s economic model. One of his goals is to incentivize companies to relocate to the U.S., especially if they rely heavily on American consumers.
Unlike Canada, the United States doesn’t operate a national transfer payment system. If California or New York adopts socialist policies, taxpayers in Florida or Texas aren’t required to subsidize them. In Canada, however, Alberta’s small-government model is forced to subsidize provinces like Quebec and those in Atlantic Canada, which incentivizes them to maintain the status quo and avoid reform.
The Bottom Line
Most Canadians live close to the U.S. border because Canadian governance discourages industry and resource development, while rewarding bureaucratic expansion and dependency. The result is a nation that increasingly relies on the economic engine of its southern neighbor—while failing to build up its own.
That’s your lesson for today.
Consider making Jesus Christ your Lord and Savior today.