Canada’s Equalization Paradox: When Does Support Become Dependence?

Those questions remain ours to answer: How much should Canada equalize, and what should we equalize?

Mark Macneill , Bio and Archives--August 18, 2026

Cover Story | Comments | Reader Friendly | Subscribe | Email Us

An equalizer is supposed to correct an imbalance. In music, it adjusts what is too high or too low. In ordinary life, it levels the playing field. In Canadian federalism, Equalization is supposed to ensure that differences in provincial wealth do not produce unacceptable differences in public services. But a good equalizer should correct an imbalance, not preserve it.

Does Equalization actually make poorer provinces stronger?

After nearly seven decades of modern Equalization, Canadians should ask a simple question: Does Equalization actually make poorer provinces stronger?

International experience reveals an important distinction. Equalization is effective at helping provincial governments spend at comparable levels. It is much less clear that it helps weaker provincial economies catch up.

Section 36(2) of the Constitution Act, 1982 commits Ottawa to making equalization payments so provinces can provide "reasonably comparable........

© Canada Free Press