Author Peter Moreira in his book Backwater - Nova Scotia's Economic Decline ($16.95 + $2.20 tax and rising here in Nova Scotia) thinks so.
As he puts it equalization was devised back in the 1950s as a way to make sure that different regions could provide the same basic services. He makes the argument that there was and still is an implicit understanding that each 'have-not' province will work to become a 'have-province' and get off the system. But the three Maritime provinces have drawn equalization payments each year since. Equalization currently makes up almost a quarter of Nova Scotia and New Brunswick revenues and more than 40% of PEIs. It has become a structural item in budgets and provincial leaders are congratulated when they 'go to Ottawa and get a bit more'. How sad.
Unless a provincial government is willing to commit to a hard goal of eliminating the need for equalization payments by a certain date then isn't continuing to accept the payments just abusing the system? As the 'haves' have started to debate after half a century would they be justified in simply cutting us off?
As he puts it equalization was devised back in the 1950s as a way to make sure that different regions could provide the same basic services. He makes the argument that there was and still is an implicit understanding that each 'have-not' province will work to become a 'have-province' and get off the system. But the three Maritime provinces have drawn equalization payments each year since. Equalization currently makes up almost a quarter of Nova Scotia and New Brunswick revenues and more than 40% of PEIs. It has become a structural item in budgets and provincial leaders are congratulated when they 'go to Ottawa and get a bit more'. How sad.
Unless a provincial government is willing to commit to a hard goal of eliminating the need for equalization payments by a certain date then isn't continuing to accept the payments just abusing the system? As the 'haves' have started to debate after half a century would they be justified in simply cutting us off?