Commentary
The current Liberal government might achieve a windfall in popularity from concluding agreements on health care with each of the provinces. Perhaps the agreements will be used as the trigger for an early election. It is impossible to evaluate the deals without seeing and studying the details. In the meantime, there are some questions and concerns.
More transfers from Canada to the provinces is not an unconditional good for the provincial taxpayers. They pay both federal as well as provincial taxes, and they pay when inflation is caused by government spending. Is the deal-making process here guided by any rational standard that ensures fair treatment for all provincial governments and taxpayers? Or will the federal government be able to reward or punish on political grounds—where their seats or potential voters are—which provincial government proves to be the most pliant on health care or other federal government priorities?…
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