Equalization Payments in Canada
...to focus on two major ones. The first one is migration of people from the “have not provinces” to the “have provinces”. Without these people in the “have not provinces”, there isn’t much of a labour force. Labour force is one of the key ingredients for a strong industry. Another cause of regional disparity is technology. With new technology in an industry, it can help that industry operate more efficiently creating more money for the province. The problem is that the “have not provinces” usually can’t afford this technology, but with the help of equalization payments they could afford more technology. With more technology and a stronger industry people will stop leaving the “have not province” and you will keep your work force in that province. Equalization payments have worked in the past so they should do the same now. From 1957-1964 Alberta received equalization payments. With the help of these payments, Alberta got out of its economical problem and turned out to be the province that it is today. These places like Ontario and Alberta could pay for much better schools and health care than provinces like Newfoundland and New Brunswick. Yet the people who live in each of these provinces are Canadians, and entitled to some equal levels of service. Equalization can achieve that, because with the extra money that these provinces get through this system, which they cannot make themselves, they can provide a better level of services to the citizens. The premier of Nova Scotia, John Hamm said, “Under favorable conditions, offshore resources could give Nova Scotia its economic independence. This situation could not come about unless Nova Scotia receives special treatment, in the form of equalization payments”. The “have not provi...