Equalization has failed. The system encourages dependence not independence. It promotes debt not fiscal prudence. In this commentary, presented to the Expert Panel on Equalization and Territorial Financing Formula, AIMS provides four key public policy changes that can make equalization work.
AIMS used its research in a number of fields to prepare a presentation on productivity and competitiveness at the request of the Standing Senate Committee on Banking, Trade and Commerce. Director of Research Services, Bruce Winchester, said Ottawa has to take steps to reform equalization, employment insurance and regional development programmes.
The budget delivered last week by the Binns government failed to heed the advice of experts, or learn from the experience of those jurisdictions that have successfully turned their economies around. Economic growth is fueled by spending cuts, tax cuts, and debt reduction.