Help That Hurts

[Jay]

http://www.aims.ca/aimslibrary.asp?ft=5&fd=0&fi=0&id=1233&p=1

Finding a way out of the equalization trap


"Equalization was not a program developed to stunt or hinder prosperity, although increasingly that is what it is doing in both the contributing and recipient provinces," says Crowley. "If major subsidies like equalization were the solution to our problems of regional disparity, those problems would have been solved long ago."

 

[TenPenny]

Indeed. Equalization was originally to help share the wealth of the country as a whole, based on that odd notion that Canada was a country. Now, with certain non renewable resources taken out of the equation, it has become a farce.

Time for some major revamping of the system. If oil royalties are not counted, then obviously minerals shouldn't be, either.

 

[Jay]

I think the issue there is land vs. sea. Provinces have control of land based resources and the Feds have the sea.