Canada Should Fix Equalization and Other Regional Subsidies Now, the latest study by the Atlantic Institute for Market Studies and the Frontier Centre for Public Policy, demonstrates how equalization is unfair, diminishes productivity, holds back economic development,...
Deplorably, the federal government recently announced it was renewing the current equalization system in Canada. I say “deplorably” because the evidence is mounting that equalization is a millstone around the neck of the less-developed provinces seeking to escape...
The Frontier Centre's David MacKinnon and why Canada's "have" provinces are getting a raw deal when it comes to equalization.
David MacKinnon February 2, 2017 In recent months, several commentators have been recommending that other countries adopt equalization and other Canadian-style regional subsidies. They argue that this would help avoid the political stresses that the American rustbelt...
The indictment of former U.S. president Donald Trump for crimes invented by his political opponents is the most egregious example yet seen of the weaponizing of the law. The United States is now full of examples. However, in Canada, we also see the law being...
OTTAWA, REGINA - Last week, two things happened that could have profound impacts on natural resources development in Saskatchewan. One is a hint the federal government might want to take control of natural resources away from the provinces, and the other is the...
No one does a better job than David MacKinnon of revealing what he calls “the tragic consequences” of Canada’s broken equalization program.
I will deal with the myths associated with the current equalization system and then devote the largest part of my remarks to the consequences of these myths for Canadians and the politics of actually changing.
Last week, the Globe and Mail ran an article authored by John Ibbitson which profiled David MacKinnon, a Frontier Centre senior fellow and one of the country's leading critics of Canada's equalization program. David's work over the past several years has helped show...
Mention the subject of federal transfer payments, and most people’s eyes will glaze over. Mention that taxpayers in Alberta, British Columbia and Ontario are net contributors to federal transfer payments – even though the cost of living is highest in those provinces, and lowest in the provinces that receive the bulk of federal transfer payments – and you might get people’s attention.
While these proposed reforms will be seen as very scary by our cautious ruling political class, they must still be seen for what they are. We need to look at the tweaks purportedly being considered as more patches on a very patched up and dysfunctional transfer payment system.
Anyone with even a fleeing memory of Saskatchewan’s former battles with Ottawa over equalization might consider Premier Brad Wall utterly mad even for mentioning the topic today, let alone express concern about the federal program.
Admaston-Bromley Mayor Raye-Anne Briscoe says Ontario really has become a have-not province, as far as federal equalization payments are concerned, but there’s precious little media coverage about it.
Equalization doesn’t just reward failure. It encourages it. Seven Canadian provinces were chronic recipients of the program from the very beginning and all have been economic and financial underperformers that bleed ambitious young people to more dynamic parts of the country.
To grasp why Canada’s equalization program is such a public policy disaster, some myths need to be busted about the $14.8-billion annual transfer of federal tax dollars to the provinces through equalization — and the $46-billion in other inter-governmental transfers. So, let’s some consider some inconvenient facts.