In The Communist Manifesto, Karl Marx wrote that socialism would evolve into communism after capitalism was replaced. A near-perfect order would be achieved, and all would be equal. Although Marx wouldn’t agree, provinces must evolve similarly out of the equalization program.
The Canadian equalization program began in the 1950s as a provincial welfare system. Money was transferred from economically sound provinces to ones in financial struggle. At the time, this meant that the poorer Maritimes received money to quell unemployment and a crumbling infrastructure.
Recently, Finance Minister Jim Flaherty announced that Ontario, for the first time, would begin receiving payments. Ontario qualified for equalization each year between 1977 and 1982, but never chose to accept it. While Ontario’s growth has been slowing, its GDP is still ahead of the national average. We took the offer this time around—and rightfully so—due to an economic downturn with catastrophic consequences for automotive and manufacturing industries.
The reason Ontario is eligible is that other provinces have quickly caught up to us. Less than two decades ago, Newfoundland and Labrador’s GDP was merely 65 per cent of the national level—it’s now 97 per cent. For the first time, the province will not be on the receiving end. “I don’t think the Newfie joke is there anymore. I think we’re now an example to our fellow Canadians of how it can be done and how to work your way through hardship,” said Premier Danny Williams. While I think Newfie jokes will remain a beloved Canadian tradition, I agree that Maritime provinces are working through their difficulties.
No parent wants a 30-year-old living in their basement. While parents support their children through youth and the occasional adult hardship, no one expects to do so forever. Canadians should expect the same of provinces. The equalization program kept everyone afloat before we developed into a G8 nation. Today, the provinces that needed help in the past can thrive without Ottawa’s cash flow.
Provinces have become dependent on federal money. Some even expect it. They don’t need to be financially responsible, because if they screw up, Ottawa will write a cheque.
Not only is the program unnecessary, it is corrupt. Though Quebec has always qualified for equalization payments, it is always the richest recipient. Politicians know that even suggesting a slight cut is a sure way to lose votes. Quebec is certainly not a province of have-nots. This terminology is radically outdated, indicating that provinces no longer need equalization payments.
It’s difficult to imagine the United States implementing a similar program—equalization is uniquely ours. Canadians have an instinct to support each other. We realize we’re all in the same boat, that we all weather the storms. Many are fervently against privatized healthcare for this reason. We consider universal healthcare a national symbol—for better or worse, it represents our belief in looking after others when they need help and expecting the same in return.
But we can dump the equalization program without forsaking eachother. Instead of adhering to a perverse balancing scale, our federal government should allow provinces to work through rough patches.
We throw cash at not-so-needy provinces without realizing that these provinces are fine without the support. These bailouts encourage dissent among provinces and threaten national unity. We can find better solutions to economic woes, like creating jobs and increasing funding for education. We can replace our infighting with a new order of real solidarity.
