One of Canadas Most Resource-Rich Provinces Is Acting Poor

CommentaryIf a beauty pageant were held for the provinces, Manitoba would likely place last. Its unremarkable landscape and harsh climate are enough of a challenge. What is harder to excuse is that one of Canada’s most resource-rich provinces has become one of its poorest economic performers.A friend of mine who regularly travels to Corpus Christi, Texas, is always impressed by that city: an inviting downtown, a modern highway system, and a roaring economy. The reality of what Manitoba has become is always a shock whenever he returns to Winnipeg.If comparing a prosperous American city to Winnipeg may seem disingenuous, it is not uncommon for people to note how poorly Winnipeg now stacks up against Regina or Saskatoon.Anecdotal evidence suggests Manitoba doesn’t rank high among university students. When I was teaching, I often asked students whether they intended to stay after graduation. “I hope not,” was the usual response. The United States was their first choice, followed by Calgary and maybe Toronto.I owe Manitoba a great debt of gratitude. This is where I met my wife. After stints in Montreal and Fresno, California, we moved back to Winnipeg in 1999 to take up a university teaching position. Manitoba may not be the most glamorous province, but we built a good life here.That said, Manitoba is not what it used to be. It is poor and getting poorer by the day, something I am reminded of every time I drive on our decaying roads.The issue is not a scarcity of resources. Manitoba could be one of the wealthier jurisdictions in North America.The problem is culture.Three examples illustrate the problem.Manitoba has significant deposits of high-purity quartz silica sand, used in solar panels, semiconductors, fibre optics, and other high-tech applications. A proposal to develop this resource is currently in the deep freeze.Following extensive public consultations, Alberta recently approved a $13-billion data centre in Sturgeon County, just north of Edmonton. When a similar project was proposed for Manitoba, Premier Wab Kinew dismissed it out of hand, evoking dubious environmental and economic concerns. No public hearings. No discussion. No debate.After premiers Smith and Ford announced a proposal to build an oil pipeline from Alberta to Ontario, Saskatchewan Premier Scott Moe immediately pledged his province’s support. True to form, our premier initially showed little interest.The real issue behind this economic paralysis is not some potential threat to the water table, unsustainable demands on the electric grid, or a lack of consultations with special interest groups.The problem is a form of cultural apathy that is plunging our province into an economic black hole and broadcasting that Manitoba is closed for business.The parasitical DNA that has infected Ottawa for over a decade has now spread to our provincial government.The anti-can-do virus afflicting Manitoba will not be without consequences. Young people will continue to leave in search of greener pastures. Indigenous people will have fewer opportunities for self-sufficiency. And the middle class will continue to buckle under an ever-expanding tax load.Why is this happening?In addition to an unconscionable addiction to deficit spending—$1.5 billion in fiscal 2024-25 and a projected $1.67 billion in 2025–26—much of the blame must fall on Canada’s equalization program. In 2025–26, Manitoba received roughly $4.7 billion in equalization payments, or 18 percent of the province’s revenues. That figure is expected to reach $5 billion in 2026–27.The equalization program has been a curse for Manitoba, for free money without accountability extinguishes human ingenuity, annihilates any incentive to create wealth, and obliterates any need to be self-sufficient.Manitoba is running out of time for the course correction needed to avoid the economic and social train wreck ahead. End deficit spending now and drastically reduce our reliance on equalization payments. Cut taxes to make life more affordable. Approve at least one major project, preferably two, to signal that Manitoba is open for business.Approving the Alberta–Ontario pipeline, for example, would not only be a clever political move but would signal that the province is ready for a full makeover.Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times.