Hi Sharky,

Canada is a big country. We have 10 Provinces and a number of territories. Unfortunately, years ago, there was an equalization policy brought in by the Federal Government. So, what happens is the "have" provinces share with the "have-nots".

The problem with this policy is that it does not encourage people to move where the resourses are. Most often people frequently choose to stay wherever they might be living.

Over time, Alberta has been the Province that has had the most resourses and has generated the most dollars that have been put into the equalization formula.

So what is happening is that we have one Province that is in fact supporting most of the other 9 provincesjn equalization. At times, such as now, we also have Saskatchewan that is rapidly becoming a "have" province. In the past, I believe, Ontario has been a "have" province and also British Columbia.

But quite bluntly, at the present time we have 1 Province that is funding all the other provinces over and above normal taxes and business taxes. So as you can see, the policy is quite socialist and does not necessarily look after the needs of a free enterprize type country.

It's quite amazing to me that the Federal Government does not recognize that we can't continually support the uneconomic provinces in Canada by in effect encouraging people to stay there. It would be better for those people to move to those provinces that have better economic possibilities and bring their families as well. Over time people would move to those places in Canada that can best meet the economic needs of both the families and the Country.

Then we have one province that on an irregular basis threatens to leave Canada if they don't get their own way and they have had 2 referendums over the last number of years, both of which were very close but that province was able to stay in Canada. I believe over time that that province has received by far the most in equalization payments and it is even allowed to collect its own taxes.

So, yes we have problems here. We have a free enterprize nation that has a considerable number of socialist policies and so we are not able to be as buoyant economically as we should be.

We have one more problem in Canada and that is the size of our country. Our population is approximately 33 million, which I believe would be equal to the size of Mexico City if you consider the surrounding areas of Mexico City. Canada has infrastructure like you wouldn't believe. So not only do we have to satisfy 33 million people scattered around a large country, but we have to continually maintain and build new infrastructure which costs a ridiculous amount of money.

I'm long winded again, but I hope this helps to describe the economic situation that Canada finds itself in.

Best Wishes,

Lynn