Canada had long provided subsidized housing for people who couldn’t afford to pay market value: for workers and returning veterans after the Second World War, for example, and in the 1970s and early 80s as pressure mounted for Ottawa to intervene during a series of recessions.

In the early to mid-1990s, back-to-back governments of different political stripes — first the Conservative government under Brian Mulroney and then Jean Chretien’s Liberals — began pulling back from the business of affordable housing.

  • Sir_Osis_of_Liver@kbin.social
    42·
    1 year ago

    That is a decent history. As noted by the author, the provinces have always been ready and willing to come up with creative reasons why they need more money. Sometimes they actually need it, sometimes they’re gilding the lily.

    It has happened more than once, where an increase in the transfer was negotiated, and a number of provinces turn around and cut taxes, and put their hand out for more.

    It’s the problem with the system we have. Some ministries, like health, are very expensive, especially so for smaller provinces. Once the feds get involved though, accountability gets muddied, and you get both the feds and provinces pointing fingers at each other as to who is responsible for the mess we’re in.

    I should point out that debt originated with the Trudeau government dealing with the economic chaos that was the 1970s. Mulroney certainly exacerbated the problem with irresponsible tax cuts, much as Regan and Thatcher at the time. His government did partially contribute to the solution with the introduction of the GST as a more broadly based replacement for the old Manufacturer’s Sales tax, but too late to get any credit for sorting the debt problem.