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Policy Notes

Buchanan defined the Iron Triangle – January 17, 2013
James Buchanan, known as one of the founders of public choice economics, has just passed away. Public choice economics is essentially the economics of politics and how organized special interests dominate policy-making.
Artificially Cheap Hydro Power – May 29, 2012
The federal government paid 34% more equalization to Quebec that it should have under more equitable rules that would treat hydro revenues the same as oil in the equalization formula. Alberta and Ontario taxpayers are effectively paying Quebec (and Manitoba) to consume artificially inexpensive power.
New Brunswick Needs Financial Reality and Leadership – May 11, 2012
Rather than focus on old, discredited explanations for New Brunswick’s poor economic performance, leaders must acknowledge the role that excessive federal subsidies play in underperformance.
Chongqing, Bangalore and Canada – December 21, 2011
David MacKinnon discusses the benefits of rapid economic growth in developing countries like China and India, as well as the challenges facing Canada in an increasingly competitive global economic environment.
Making Manitoba a ‘Have’ Province – September 25, 2011
With Manitobans on the cusp of an election, it is time to adopt a model that is far less political and dependent on government spending.
Manitoba in ‘Cycle of Dependency’ – August 10, 2011
While many support the principles of federal equalization, they do not realize the distortions it causes, including bloated public sectors and a perverse incentive to raise taxes.
A Legacy Project for the New Parliament – June 1, 2011
The new federal parliament has a golden opportunity in its hands to provide meaningful and badly needed fiscal reform to the country. Such reforms could lead to economic renewal, increase productivity, lessen inter-governmental tensions, and strengthen the federation.
The Unintended Consequences of Canada’s Equalization Program – May 27, 2011
Although well-intended, Canada’s equalization program has produced a number of unintended consequences in both have and have-not provinces.
Rejecting Subsidy, Shunning Dependency – November 16, 2010
Ben Eisen’s study of “stealth equalization” provides further evidence for the new movement of Atlantic Canadians who understand that federal subsidies undermine their economic capacity for self-reliance and foster dependency.
Equalization Is Indeed a Problem – April 12, 2010
The critics of equalization reform keep getting it wrong: Fact is, federal transfers prop up bad provincial policy.
How The Provinces Broke Their Confederation Deal – March 22, 2010
Equalization should be replaced with a transfer of tax room to the provinces.
Inequalities of Equalization Leave Ontarians Worse Off – March 2, 2010
In a Toronto Star column, the Chair of the Ontario Institute for Public Policy points out equalization harms Ontario.
How Equalization Hammers Ontario, Alberta and British Columbia – March 1, 2010
Equalization is a disaster for Ontario, Alberta and British Columbia as it funds richer services in have-not provinces compared to “have” provinces.
Reform Unprincipled Equalization System – February 26, 2010
Equalization is a problem because it is one of the principal pillars of Canadian federalism—but unprincipled in its design and impact.
How Equalization Punishes Canadians in High-Cost Provinces – January 25, 2010
Equalization punishes Canadians in high-cost provinces.
Transforming Manitoba – January 16, 2010
Manitoba’s old style public sector model has placed the province firmly outside of western Canada's mainstream.
End Equalization Squabbling – January 24, 2009
Ottawa and the provinces need to get out of each other’s fiscal hair—this to make government clearly responsible for its own taxation and spending policies.
Canada’s Own Financial Bubbles: Have-Not Provinces – November 4, 2008
Our regional subsidy system is not transparent, it is not sustainable and it is driven by excess. It is almost by any definition a bubble.
Selfish is Asking High-cost Provinces to Subsidize Low-cost Provinces – July 23, 2008
Any new call for more transfers from Alberta – or Saskatchewan, BC and Ontario – is misguided. Existing redistribution schemes are already flawed.
An Answer for When Ontario Comes Calling – April 7, 2008
Ontario is straining under the weight of carrying much of Canada’s dysfunctional federal transfer programs.

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