Quote:
Originally Posted by SebC
If being in Alberta makes you more economically productive, perhaps we should not be reducing the incentive for workers to move to Alberta.
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There's been some good arguments coming out that one of the reasons for Canada's bad productivity performance is fiscal federalism and equalization muting labour mobility. If you look at the U.S. labour is much more mobile going from low to high productivity areas.
Eitherway, that is the price we pay for knitting together such diverse geographic and demographic areas. Especially two entirely distinct founding cultures (British-French). Without this fiscal union the country would simply not have been able to stick together.