The economic gap between provinces has shrunk yet equalization payments have continued to increase.
Alberta received just $249 million in payments despite a revenue loss of $7.2 billion.
Currently, equalization payments increase in line with nominal GDP growth.
The program offset just 3.5 per cent of Alberta’s year-over-year revenue loss.
The Trudeau government raised the cap from $60 per person to $170.
Evidence suggests that a 1.0 percentage point increase in spending produces a 0.75 percentage point drop in economic growth.
The rest of the country may not be willing to subsidize Atlantic Canadian seasonal workers like in the past.
Stimulus spending can actually "crowd out" private economic activity.