As with many economic phenomenon, there is no single explanation for the gap in unemployment between the U.S. and Canada. It is evident that Canada has many contributing factors affecting its high unemployment rate, although most seem to be rooted in government policies and programs. Some argue that a cut in such government instituted programs is the only way to initiate a decline in the unemployment rate, while others disagree maintaining that this would be undemocratic and would violate the social contract. The United States has a much less generous offering of social assistance, and lower payroll taxes and minimum wage rates, however this has not affected the people in a negative way. In fact, there is substantial evidence that their economy is booming, proving that it is possible to have a fruitful society with lower government subsidies. It is not until there is a cut back in these programs, that the Canadian unemployment rate will drop. Any change, calls for significant measures, with real impacts on peoples’ lives. However, until this happens, the unemployment rate gap between Canada and the U.S. will remain present and lasting.