Tuesday, October 18, 2005

Fixing Fiscal Federalism - Pale Style

Canadian fiscal federalism is not only unfair to Ontario but ineffective in helping poorer provinces become wealthier, a provincial think-tank says. According to the Institute for Competitiveness and Prosperity, I, as an Ontarian, give $1,600 each to poorer provinces but see little results from this - the poorer provinces stay poorer. They say that the current system transfers massive volumes of money "from high-productivity uses to low-productivity uses, lowering Canada's absolute level of productivity."

I have a better idea - give me the $1,600 and I'll put it to use in the poor province of my choice. (For the mathematically challenged, that works out to 16 pizza dinners for Volpe.)

Here are some things $1,600 can do :

Pay the average mortgage for almost two months;
Pay for a year’s tuition at a community college;
Pay the gasoline cost for two cars for a year
Buy an average family 24 months worth of electric power.
Buy a laptop.
Buy a gun, holster and bullets.

All productive uses of the money that can help a family's productivity! And that's every year!


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