David MacKinnon explains that Canada's equalization severely penalizes Alberta and Ontario and is a corrosive factor in the recipient provinces. Instead of ensuring equal services, it actually increases the disparity. Quebec, meanwhile, has had a 62 percent increase in its equalization payments over the past four years. There is little appetite in Ottawa to study the effectiveness of equalization, and so it has hardly been done. However, the Atlantic Institute of Market Studies have shown some of these disturbing discrepancies between "have" and "have not" provinces.
A newspaper article on this speech can be read here.
Monday, February 09, 2009
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