Perhaps the most fascinating component of [Prof. Thomas] Courchene’s paper is his subtle discussion of what, precisely, equalization is for. Is it meant to render every province in Canada equally well off in general? Or is it meant only to correct inequities introduced by the provinces’ different geographic and natural circumstances? Or is it meant even more narrowly, as a scheme to ensure that the federal government doesn’t accidentally worsen those inequities? Or it is meant merely to discourage culturally harmful labour migration?
There is no official answer to this question, and all the possible answers lead to moral and mathematical absurdities. It’s not just that we don’t know whether equalization works, as Terence Corcoran observed in the Financial Post yesterday. We literally don’t even know what it’s meant to accomplish
Colby Cosh, “Economist plays ethicist”, National Post, 2005-09-01.
September 15, 2025
QotD: Federal equalization payments
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