These IMF economists compared how governments in Canada and the US spread over the whole country the economic rises and dips of different regions. This means that the US tax system spreads 30 percent of the risk of income fluctuations. The Canadian system only spreads 17 percent of these risks. Not only does Ottawa do a worse job of protecting us from risk than Washington does for its citizens, Ottawa also discourages us from hedging risks by putting our money abroad. Instead of relying on government equalization programs to insure us from risk, we should rely on international financial markets.
Governments are poor insurance agents.
Lift the 20 percent foreign content rule on RRSPs, and allow individuals to take the whip and chair into their own hands and tame the financial lions before which our governments have fled.