by Denny » Sun 09 Nov 2008, 15:00:57
Back at the time of the Rowell-Sirois royal commission, which developed equalization, in 1937 if I recall from my high school history, Alberta was the most "have not" province in Canada.
Perhaps the fact that Alberta survived economically to see the day when the oil gushers of Leduc come in was in some part due to the cash flow from other provinces.
Most every government, including the U.S.A., has a principle of providing services for the "common good". So, even in the times gone by of what we think to be pure capitalism, the reality is that the wealthy paid more in taxes than they drew back in services. Schools, roads, police protection, etc. Equalization just extends the concept of funding services provided by the province to a national playing field.
I think equalization can be taken to an extreme, not all government services are all that essential, we even had the case about 20 years go, in which Newfoundland, could fund its tuition free provincial university while Ontario, which paid then paid the brunt of equalization had to raise tuitions at its own.
We all, as Canadians, want to see our brothers and sisters in the poorer regions having access to a basic level of services, such as agriculture, policing, health, education, roads, safety inspections, recreation and tourism development, right?