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Fraser Forum May/June 2012 1 Fraser Forum Contents Fraser Forum Publisher Fraser Institute Chief Editor Niels Veldhuis From the editor Managing Editor Emma Tarswell Editorial Advisor Kristin McCahon Contributing Editors Peter Cowley Amela Karabegović Fred McMahon Mark Rovere Art Direction and Cover Design Bill C. Ray he first quarter of the year has come and gone and Cover Illustration Bigstock with it came the federal and provincial budgets. By Production and Layout Emma Tarswell T Media Relations Dean Pelkey the end of March, all budgets had been presented and Advertising Sales Advertising In Print Fraser Institute researchers responded promptly with Tel: (604) 681-1811 their reviews and critiques. E-mail: info@advertising inprint.com Starting on page 9, Fraser Forum researchers look The Fraser Institute’s vision is a free and prosperous world where at the federal budget and three provincial budgets—Al- individuals benefit from greater choice, competitive markets, and personal responsibility. Our mission is to measure, study, and communicate the im- berta, British Columbia, and Ontario—respectively. pact of competitive markets and government interventions on the welfare Each budget has its own unique flaw: the federal budget of individuals. Founded in 1974, we are an independent Canadian research and educational organization. Our work is financed by tax-deductible con- merely plans savings, not substantial cuts (pg. 9); Alberta tributions from thousands of individuals, organizations, and foundations. In order to protect its independence, the Institute does not accept grants from has no credible plan for a return to a balanced budget government or contracts for research. (pg. 12); BC’s plan raises taxes and increases government For additional copies, or to become a supporter and spending (pg. 14); and Ontario had the opportunity to receive Fraser Forum, write or call the Fraser Institute, 4th Floor, 1770 Burrard Street, Vancouver, BC V6J 3G7 make significant, and much needed, changes but chose Telephone: (604) 688-0221; Fax: (604) 688-8539; Toll-free: not to (pg. 16). In each budget article, Institute research- 1-800-665-3558 (ext. 580–book orders; ext. 586–development) ers dive in and explain what ought to have been done to Copyright © 2012 Fraser Institute balance the books quickly and effectively. ISSN 0827-7893 (print version) ISSN 1480-3690 (online version) This issue also brings attention to worker choice Printed and bound in Canada. laws in the United States—specifically, Indiana, the lat- Return undeliverable Canadian addresses to: Fraser Institute, 4th Floor, 1770 Burrard St., Vancouver, BC V6J 3G7 est state to implement these laws. Follow Indiana’s lead (pg. 5) discusses how Canadian provinces are affected The contributors to this publication have worked independently and opinions expressed by them are, therefore, their own and do not necessarily by worker choice laws and how their implementation reflect the opinions of the supporters, trustees, or other staff of the Fraser Institute. This publication in no way implies that the Fraser Institute, its would benefit the Canadian worker. In Stealth confisca- trustees, or staff are in favour of, or oppose the passage of, any bill; or that tion: Property takings via regulation (pg. 19), Mark Milke they support or oppose any particular political party or candidate. explains how regulatory changes to private property can Fraser Institute Board of Trustees Peter Brown (Chairman), Brad Bennett (Vice Chairman), Paul Fletcher (Vice Chairman), Mark W. prevent certain uses of that property, which in turn can Mitchell (Vice Chairman), Salem Ben Nasser Al Ismaily, Gordon Arnell, Kathy Assayag, Ryan Beedie, Ed Belzberg, Joseph Canavan, Alex Chafuen, affect property values. Derwood Chase, Jr., James Davidson, John Dielwart, Stuart Elman, David You won’t want to miss our health care articles: Filmon, Greg Fleck, Shaun Francis, Ned Goodman, John Hagg, Paul Hill, Stephen Hynes, Charles Jeannes, C. Kent Jespersen, Andrew Judson, Canada’s aging medicare burden (pg. 23) discusses how Robert Lee, Brandt Louie, David MacKenzie, James McGovern, George Melville, John Montalbano, Gwyn Morgan, Eleanor Nicholls, Pierre Karl Canada’s aging population might affect our health care Peladeau, Roger Phillips, Herb Pinder, R. Jack Pirie, Kevin Reed, H. system in the future. In Why we wait (pg. 27), Bacchus Sanford Riley, Gavin Semple, Rod Senft, Anthony Sessions, Bill Siebens, Anna Stylianides, Arni Thorsteinson, Michael Walker, Jonathan Wener, Niels Barua follows up on the Waiting your turn study and Veldhuis (President), Peter Cowley (Senior Vice President, Operations), Fred McMahon (Vice President, Research), Sherry Stein (Vice-President, explains some of the causes for the long wait times Cana- Development), Stuart MacInnis (Secretary-Treasurer) dians face for health care. Founder & Honorary Chairman for Life T. Patrick Boyle The May/June issue also brings you an article on Fraser Institute Lifetime Patrons Sonja Bata, Charles Barlow, Ev the political history of Bob Rae, former Ontario premier Berg, Jim Chaplin, Serge Darkazanli, John Dobson, Art Grunder, Raymond Heung, Bill Korol, Bill Mackness, Fred Mannix, Con Riley, Catherine Windels and interim leader of the federal Liberal party (pg. 7), a Purpose, Funding, and Independence review of Canada’s supply management boards (pg. 31), The Fraser Institute provides a useful public service. We report objective an update on policy research from outside the Fraser information about the economic and social effects of current public policies, and we offer evidence-based research and education about policy options Institute (pg. 34), and a column from Walter Williams on that can improve the quality of life. The Institute is a non-profit organization. Our activities are funded by charitable donations, unrestricted grants, ticket government regulation (pg. 36). sales and sponsorships from events, the licensing of products for public distribution, and the sale of publications. All research is subject to rigorous review by external experts, and is conducted and published separately from the Institute’s Board of Trustees and its donors. The opinions expressed by staff or author(s) are those of the individuals themselves, and should not be ~ Emma Tarswell interpreted to reflect those of the Institute, its Board of Trustees, or its donors and supporters. As a healthy part of public discussion among fellow citizens who desire to improve the lives of people through better public policy, the Institute welcomes evidence-focused scrutiny of the research we publish, including verification of data sources, replication of analytical methods, and intelligent debate about the practical effects of policy recommendations. www.fraserinstitute.org Fraser Forum May/June 2012 1 Fraser Forum Contents 1 From the editor 4 Forum Authors Follow Indiana’s lead: Canadian 5 provinces should give workers choice 7 Niels Veldhuis and Amela Karabegović More of Bob Rae? Indiana has become the 23rd US state to implement worker choice laws. Canadian provinces should follow suit and allow workers to decide what they want. 7 More Rae Days ahead? Niels Veldhuis and Milagros Palacios Interim leader of the Liberal party Bob Rae’s record is studied and questioned. 9 The no-cut federal budget Niels Veldhuis, Charles Lammam, and Milagros Palacios The 2012 federal budget does not call for spending cuts 19 and only offers up savings. Property confiscation 12 Nothing “conservative” about Alberta’s budget Niels Veldhuis, Nadeem Esmail, and Milagros Palacios Alberta’s 2012 budget does not provide a credible plan to balance the province’s budget. 14 BC’s 2012 budget: A firm foundation for the future? 27 Charles Lammam and Niels Veldhuis Why we wait Will BC be able to balance the budget with increased spending and increased taxes? 2 Fraser Forum May/June 2012 www.fraserinstitute.org Fraser Focus Canada’s 2012 budgets — begins on page 9 Ontario’s budget 2012: A missed Canada’s aging Medicare burden 16 23 opportunity Bacchus Barua and Mark Rovere Niels Veldhuis, Charles Lammam, and Milagros Palacios What effect will Canada’s aging population have on the health care system? Ontario finance minister had the chance to present a bold budget that would make real changes in the province; he chose the status quo. Why we wait 27 Bacchus Barua 19 Stealth confiscation: Property takings via regulations Long waits continue in Canadian health care but what are the main causes? Mark Milke A look at examples of property takings by provincial governments. 31 Regulation review: Canada’s food cartels versus consumers Mark Milke Canada’s cartel-like supply management boards should be abolished. 34 Quarterly Research Alert Our researchers summarize new research on: gov- ernment size, tax policy, fiscal policy, and labour market policy. Dupes for the state 36 Walter Williams From tobacco laws to property rights, governments continue to over regulate our lives. www.fraserinstitute.org Fraser Forum May/June 2012 3 Forum Authors Bacchus Barua (bacchus.barua@fra- Mark Milke (mark.milke@fraserin- serinstitute.org) is an economist in the stitute.org) is director of the Fraser Centre for Health Policy Studies. He Institute’s Alberta office and of the completed his B.A. degree in economics Alberta Prosperity Project. He has a at the University of Delhi, and received Ph.D. in international relations and an M.A. in economics from Simon political philosophy from the Univer- Fraser University. sity of Calgary. Nadeem Esmail is a senior fellow and Milagros Palacios (milagros.pala- a former director of Health System Per- [email protected]) is a senior formance Studies at the Fraser Institute. economist with the Fraser Institute’s He holds an M.A. in economics from fiscal studies department. She holds an the University of British Columbia. M.Sc. in economics from the University of Concepcion in Chile. Nachum Gabler (nachum.gabler@fra- Mark Rovere (mark.rovere@fraserin- serinstitute.org) is a research assistant stitute.org) is the associate director of in the Centre for Canadian-American the Health Policy Research Centre at Relations at the Fraser Institute. He has the Fraser Institute.
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