The Unintended Consequences of Canada’s Equalization Program

How Canada’s equalization program has some provinces more equal than others


The stated objective of Canada’s equalization program is to ensure provincial governments in less-prosperous regions of the country are able to deliver high-quality public services to residents. This is a worthwhile, even noble objective. That the program is motivated by good intentions, however, does not necessarily mean it is producing positive results. In fact, equalization is producing disastrous unintended consequences for all the provinces, including those receiving the biggest cheques.
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