Western Seperation not run by dummies

[Klause]

Equalization is in the constitution so its not going to go away. We are not the only country to use equalization programs.

Go read articles 106 and 107 of the German constitution.


How come an economy the size of Germany only has a 9 billion euro equalization program...


For the entire country.

Keep on ignoring facts that don't agree with you Chuck.


By the way how's Norway's equalization work? You love using Norway as an example

[ajl]

Canada's GDP is dependent on a lot of factors. Lower oil prices cause a lower dollar which makes canadian exports more competitive. Oil is in a a slump but is still relatively high especially with an 80 cent dollar. Even with a major drop in oil prices our growth is still relatively good and is the best in G7. We still have a triple AAA credit rating. So all this doom and gloom is more politics than reality.

The federal taxes that the Government of Canada collects do not belong to Alberta or any individual. Alberta is responsible for their own revenue and spending.

What specific principles in the equalization program need to change?

There is no real growth in Canuckistan today at all. Our real economy is actually shrinking. Our economy functions like the China's today. The government borrows money to get a certain growth rate. All the Stat Can picked up was the effect of Ottawa, Alberta, and Ontario stimulus spending which happened to show up in H1 this year. Q3 looks like we are back in recession once the data revisions are finished. If only bureaucracy had a market.

[westernvicki]

http://edmontonjournal.com/opinion/columnists/frank-atkins-canadas-equalization-formula-needs-to-change-heres-why
"Under the current funding arrangements, the equalization formula does not count the market value of hydroelectric power produced in Quebec, but rather the highly subsidized price at which hydroelectric power is sold in local markets. This anomaly creates a perverse set of incentives. Power is sold in Quebec in local markets at a highly subsided price, and this reduces the amount of revenue that gets counted in the equalization formula, thus artificially increasing the amount of transfer payments received by Quebec.

The Frontier Centre for Public Policy estimates that, over the period 2005-10, if the funding formula were corrected for this anomaly, Quebec’s equalization payments would have decreased from $42.4 billion to $28.1 billion. Given that a large portion of the equalization payments have traditionally come from Alberta, which is a large producer of oil, the conclusion here is that Alberta’s transfer payments to Quebec are actually subsidizing cheap hydroelectric power in Quebec (this is also true of Manitoba’s hydroelectric power).

Here is one estimate for you Chuck Chuck, but I am sure you are aware of this.

What if the formula accounted for the underground economy Chuck?
http://www.cbc.ca/news/canada/montreal/quebec-disposable-income-1.3409683

[westernvicki]

http://www.hydroquebec.com/residential/customer-space/account-and-billing/understanding-bill/comparison-electricity-prices.html